NSE nears IPO after Sebi panel clears Rs 1,800 crore settlement

After nearly a decade of delays, India’s largest stock exchange may finally be inching towards its long-awaited public listing. The National Stock Exchange’s (NSE) IPO, first proposed in 2016, is back in focus after a key regulatory hurdle appears to have been cleared.

The Securities and Exchange Board of India (Sebi) expert panel has approved NSE’s proposal to settle long-pending cases by paying around Rs 1,800 crore, reported The Economic Times.

The move is seen as a significant step towards resolving issues that have held up the IPO for years.

The approval comes from a four-member expert committee on settlement orders, chaired by former Calcutta High Court Chief Justice Jai Narayan Patel. The panel has cleared NSE’s applications related to the colocation and dark fibre cases, which have been among the biggest regulatory concerns.

The recommendations will now be placed before Sebi’s whole-time members for final approval. If cleared, it could pave the way for NSE to revive its IPO plans.

WHY NSE’S IPO WAS STUCK

The NSE IPO has been one of India’s most closely watched yet repeatedly delayed public offerings.

Since filing its draft papers in 2016, the exchange has faced multiple roadblocks, including:

Allegations in the colocation case

Governance lapses

Concerns around technology infrastructure

These issues led Sebi to withhold approval, keeping the IPO in limbo for years.

The proposed settlement is being seen as a turning point.

As per the report, NSE has offered to pay about Rs 1,800 crore to settle the cases — one of the largest such payments in India’s regulatory history. The settlement mechanism allows entities to resolve disputes by paying a penalty without admitting or denying wrongdoing.

WHAT THIS MEANS FOR THE IPO

The development is being viewed as a major positive for NSE’s listing ambitions.

With regulatory uncertainty easing, the path for the IPO could become smoother. The exchange has made multiple attempts over the years to get approval, including filing fresh settlement applications in 2024 and 2025.

Earlier, NSE had also paid Rs 643 crore to settle a related case, signalling its intent to resolve legacy issues and move forward.

The final decision now rests with Sebi’s whole-time members. If they approve the settlement, it could clear one of the last major hurdles for the IPO.

For investors and the broader market, this could mark the revival of one of India’s most anticipated listings — nearly ten years after it was first proposed.

(Disclaimer: The views, opinions, recommendations, and suggestions expressed by experts/brokerages in this article are their own and do not reflect the views of the India Today Group. It is advisable to consult a qualified broker or financial advisor before making any actual investment or trading choices.)

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