Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey announced on Friday that the regulator has given internal approval for the proposed settlement in the long-pending National Stock Exchange (NSE) co-location case. Pandey informed reporters that the settlement proposal has been internally approved and is expected to be finalized soon. This development follows the recent filing of the draft red herring prospectus (DRHP) by NSE for its delayed initial public offering (IPO), marking a significant step towards its public listing after nearly a decade of regulatory and legal obstacles.
The co-location case has been a major unresolved issue associated with the exchange, and resolving it is crucial for NSE’s planned IPO. NSE has disclosed in its DRHP that it has set aside Rs 1,391 crore for the proposed settlement with SEBI regarding the co-location matter. Additionally, a revised settlement amount of Rs 1,491 crore has been proposed and is awaiting final regulatory clearance. The exchange has been actively working to address this long-standing regulatory concern, which has been under scrutiny for years.
According to the DRHP, both Supreme Court appeals and settlement applications related to co-location matters are still pending. The revised settlement proposals in the co-location and dark fibre cases together total Rs 1,491.21 crore. NSE’s actual cash outflow may be lower as the exchange has already deposited substantial sums with SEBI. Financial disclosures from August 2024 show that NSE had deposits of around Rs 1,107 crore with the market regulator.
