NSE Urges SEBI to Reconsider IPO Approval in Delhi High Court Proceedings

The National Stock Exchange (NSE) has requested the Securities and Exchange Board of India (SEBI) to reevaluate its decision regarding the NSE's public listing.

This appeal was made through an affidavit presented to the Delhi High Court in response to a petition filed by the People Activism Forum, which is seeking to expedite NSE's initial public offering (IPO). The next hearing is scheduled for August 14.

According to the affidavit seen by NDTV Profit, SEBI had initially approved the listing of NSE's equity shares on November 21, 2016, contingent on compliance with relevant regulations and SEBI circulars. NSE's Board of Directors and shareholders had approved the offer through resolutions on October 4 and November 10, 2016, respectively.

At that time, NSE and its affiliates were not restricted from accessing or operating in capital markets.

However, SEBI issued an order in 2019 barring NSE from accessing the securities market for six months due to issues related to its co-location facilities. Although the Securities Appellate Tribunal reduced the financial penalties in January 2023, the market access restriction was upheld.

The petition, also reviewed by NDTV Profit, highlighted that NSE's 2022-2023 annual report noted the end of the six-month prohibition and the pending SEBI approval for listing.

Reports in December 2023 suggested SEBI had set additional conditions for NSE's IPO approval, including maintaining a glitch-free year, enhancing technological infrastructure, improving corporate governance, and resolving outstanding legal issues.

On January 2, the People Activism Forum urged the Ministry of Finance to investigate SEBI's timeline for NSE's public listing. Despite further follow-ups, including a Right to Information (RTI) application for details on SEBI's conditions, the forum received inadequate responses.

The petition argues that even if NSE cannot issue new equity shares, existing shares should be listed to protect stakeholder interests. The writ petition seeks judicial intervention to facilitate NSE's public listing, citing no substantial objections from SEBI.

Advocate Rohan Thawani represents the People Activism Forum in this matter.

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