Delhi HC Rejects Plea Against Sebi’s NOC For NSE IPO, Court Says Petition Meant To Block Long-Delayed Listing Process

New Delhi: The Delhi High Court on Monday dismissed a petition challenging the no-objection certificate (NOC) given by the market regulator for the proposed IPO of the National Stock Exchange (NSE). The decision removes an important legal hurdle in NSE’s long-pending plan to go public. The court observed that the petition appeared to be aimed at stopping or delaying the IPO process of the country’s largest stock exchange. What the Petition Argued? The plea challenged the NOC issued on January 30, which allows NSE to restart its IPO process. With this approval, NSE can appoint merchant bankers and legal advisers and begin preparing documents for listing. The petitioner alleged that NSE had violated Sebi’s Corporate Action Adjustment rules. These rules are meant to ensure fairness for derivatives traders during events like bonus shares, stock splits and special dividends. It was claimed that NSE adjusted only prices and not quantities in some derivative contracts. The petition also said dividend-related amounts were deducted from derivatives traders’ accounts, which was termed beyond legal powers. The petitioner further argued that complaints were closed without proper hearing and that requests for information were rejected. Court Refuses to Intervene The High Court declined to interfere in the matter and dismissed the plea. This effectively allows the IPO process to move forward without immediate legal obstruction. The ruling is seen as a relief for National Stock Exchange, which has faced several regulatory and legal challenges over the years. NSE’s Long IPO Journey NSE first applied for its IPO in October 2016. However, approval was delayed due to governance concerns, including the co-location case and issues related to technology systems and internal controls. Over time, NSE made multiple efforts to revive its listing plans. The recent NOC from Securities and Exchange Board of India signalled that the regulator is comfortable with the exchange proceeding in principle. The High Court’s order now clears a fresh path for the exchange’s much-awaited listing.