If accepted, the Rs 1,800-crore payout would rank as the largest settlement ever made with SEBI, signalling an attempt by both sides to draw a line under one of India's most high-profile regulatory disputes.

NSE IPO In Focus After SEBI Expert Panel Clears Key Rs 1,800 Crore Settlement Plan: Reports

The long-delayed initial public offering (IPO) of the National Stock Exchange is a step closer to revival after a SEBI expert panel approved the bourse's proposal to settle key regulatory cases by paying about Rs 1,800 crore, people aware of the development told The Economic Times. The settlement relates to the long-running colocation and dark fibre cases that have been among the biggest hurdles to NSE's public listing. SEBI's high-powered advisory committee on settlement orders recently cleared NSE's application, according to people cited above.

“The expert committee has approved the settlement proposal. Its recommendations will now be placed before SEBI's panel of two whole-time members for a final decision,” one of the people said, ET reported. If accepted, the Rs 1,800-crore payout would rank as the largest settlement ever made with SEBI, signalling an attempt by both sides to draw a line under one of India's most high-profile regulatory disputes.

Committee Composition and Role

The four-member expert committee is chaired by Jai Narayan Patel, former chief justice of the Calcutta High Court. Its other members include N Venkatram, country chair of CDPQ India; SK Mohanty, former whole-time Sebi member; and Sarit Jafa, former deputy comptroller and auditor general, ET reported.

The panel evaluates settlement cases involving complex regulatory and legal issues before recommending them to SEBI's top executives.

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“This moves a long-pending regulatory matter towards closure, reduces uncertainty, and reflects SEBI's preference for faster enforcement over prolonged litigation,” a senior Supreme Court lawyer told ET. “It also clears the decks for a smoother IPO by restoring regulatory certainty.”

NSE's IPO, first filed with SEBI on October 18, 2016, is one of India's longest-pending listings. SEBI had initially withheld approval over concerns tied to the colocation case, governance issues, and technology-related lapses at the exchange.

After Tuhin Kanta Pandey took charge as SEBI chairman in March 2025, the regulator constituted an internal committee to examine the NSE IPO issue. In June last year, NSE submitted settlement applications proposing payments of over Rs 1,300 crore — Rs 1,165 crore for the colocation case and Rs 223 crore for the dark fibre case. The revised figure of about Rs 1,800 crore reflects further discussions with the regulator, ET reported.

In January, Pandey said SEBI had agreed in principle to NSE's settlement proposal, raising expectations that the long-awaited IPO could finally move forward.

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