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New Delhi: India's market regulator SEBI has given in-principle approval to NSE's settlement application in the long-running unfair market access case, removing a major regulatory hurdle for the exchange's long-awaited listing. SEBI Chairman Tuhin Kant Pandey said on Thursday that the regulator has accepted the settlement proposal at the in-principle level.
According to a Reuters report, Pandey also said that the government has approved the reduction of 2.5 percent stake in the exchange and a notification will be issued regarding this soon. This development is considered the strongest sign so far that the country's largest stock exchange is finally approaching an IPO. Earlier, Pandey had said that the No-Objection Certificate (NOC) for public offers will be issued later this month.
Reuters had earlier reported that the NSE is planning to file its draft listing papers by the end of March. The exchange is understood to be in talks with investment bankers and law firms to finalise the prospectus and assess investor interest in what could be one of India's biggest IPOs ever. Formal appointments of consultants are expected after SEBI issues NOC.
NSE, the world's largest derivatives exchange by volume, has been trying to go public since 2016. Its listing plans were repeatedly delayed due to regulatory scrutiny of fair market access through its co-location facilities as well as major governance concerns. This case is still pending in the Supreme Court. Last year, the exchange had proposed to settle the matter by paying Rs 1,387 crore, which SEBI is evaluating.
The regulatory environment has also become more favorable. In 2024, SEBI reduced the minimum public float requirement for large companies, which allowed companies with a value of more than 5 lakh crore rupees to dilute only 2.5 percent equity against the previous 5 percent after listing. The purpose of this change was to make listing easier for big issuers, including infrastructure-heavy platforms like exchanges.
(Disclaimer: This article is only meant to provide information. TV9 does not recommend buying or selling shares or subscriptions of any IPO, Mutual Funds, gold, silver and crypto assets.)
