NSE IPO: Exchange's Unlisted Shares Hit Record High Amid Settlement Talks With SEBI

News18

2 days ago

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According to reports, SEBI could now demand nearly twice the amount NSE paid in its previous record Rs 643 crore Trading Access Point (TAP) case settlement in 2023.
NSE IPO: Shares of the National Stock Exchange (NSE) in the unlisted market have surged to a record high of Rs 2,300 after at least two media reports emerged that the exchange is working towards settling the long-standing co-location case with the Securities and Exchange Board of India (SEBI). It paves the doors for NSE to bring out the long-standing IPO.
The development comes as both NSE and SEBI have reportedly restarted discussions to arrive at a consent settlement, marking a possible turning point in a regulatory saga that has been a major hurdle in NSE's IPO ambitions for years, according to MoneyControl report. The case, which is currently pending before the Supreme Court, had earlier seen SEBI challenge a Securities Appellate Tribunal (SAT) ruling that diluted penalties imposed on NSE in 2019.
Earlier, The National Stock Exchange (NSE) had clarified that it has not approached the Ministry of Finance regarding its long-pending Initial Public Offering (IPO), contrary to a recent media report.
NSE stated that it has not made 'any such representation to the Union Government in the last 30 months." There has been no communication between NSE and the Ministry of Finance on this issue.
Krishna Patwari, Founder and Managing Director of Wealth Wisdom India Pvt Ltd, said SEBI's move signals a shift in regulatory tone and has boosted investor sentiment around the NSE's public listing.
NSE's share price in the unlisted market has jumped to Rs 2,300, pushing its market cap to around Rs 5.69 lakh crore—an all-time high on May 28th, said Patwari.
'SEBI's willingness to settle long-standing regulatory issues with NSE is a major step forward," Patwari said. He added that the exchange's agreement to pay a significant sum shows its commitment to resolving legacy matters:
'The change in SEBI's stance under the new Chairman indicates a more collaborative approach. Investor confidence has surged. The spike in unlisted share prices clearly shows the optimism around NSE's IPO finally becoming a reality."
What's the Co-Location Case?
The co-location case revolves around allegations that certain brokers unfairly benefited by placing their servers closer to NSE's trading system within its co-location facility. This proximity allowed faster access to data and trades, providing an undue advantage over others and raising concerns of market manipulation and lack of fair access.
The initial SEBI order in 2019 had imposed significant penalties, which NSE challenged before SAT. While SAT gave a relatively lenient ruling, SEBI appealed the decision in the Supreme Court, where the case remains pending.
Sources told MoneyControl, SEBI could now demand nearly twice the amount NSE paid in its previous record Rs 643 crore Trading Access Point (TAP) case settlement in 2023.
'The discussions began around one and a half months ago. Currently, both sides are negotiating the amount that NSE should pay. Given the TAP case involved Rs 643 crore, SEBI may demand a significantly higher sum for the co-location matter," the source told MoneyControl.
However, with a favourable SAT order already in hand, NSE may be reluctant to accept a very high settlement demand, setting the stage for tough negotiations between the two parties.
First Published:
June 01, 2025, 12:30 IST