The Delhi High Court has dismissed a petition challenging the Securities and Exchange Board of India's approval for the National Stock Exchange's initial public offering. Justice Jasmeet Singh stated the petition aimed to halt the exchange's IPO. The court found no grounds to interfere with Sebi's decision.

NSE IPO survives High Court hurdle

Delhi High Court Dismisses Petition Challenging Sebi's Approval for NSE IPO

The Delhi High Court has rejected a petition challenging the Securities and Exchange Board of India's approval for the National Stock Exchange's initial public offering. The court found no grounds to interfere with Sebi's decision.

New Delhi: Court Rejects Public Interest Litigation

The Delhi High Court on Monday rejected a public interest litigation filed by former judicial officer KC Aggarwal, challenging the no-objection certificate (NOC) granted by the Securities and Exchange Board of India (Sebi) for the proposed IPO of the NSE.

Justice Jasmeet Singh's Ruling

Justice Jasmeet Singh stated that the petition aimed to halt the exchange's IPO.
He further said that both Sebi and NSE are based in Mumbai and that the NOC for the IPO was granted there.

Background on Sebi's Approval

Sebi had on January 30 allowed the NSE to kick off the IPO process, appoint bankers and legal advisers, and start drafting the listing documents.

Petitioner's Argument

Aggarwal argued that the NSE had violated the stock market regulator's framework on corporate action adjustments, introduced to ensure value neutrality in derivatives trading during bonus issues, stock splits, and extraordinary dividends.

Impact of the Ruling

The rejection of the petition means that the NSE can proceed with its IPO plans, which could have significant implications for the Indian stock market.