The Securities and Exchange Board of India (SEBI) has agreed in principle to settle all pending regulatory proceedings against the National Stock Exchange (NSE) for a total settlement amount of Rs 1,491.21 crore, removing a key regulatory hurdle for the exchange’s long-awaited initial public offering (IPO).
According to an NSE disclosure, the market regulator has agreed to settle all outstanding matters, including the co-location and dark fibre cases, subject to the exchange complying with the prescribed settlement terms.
Settlement to Involve Rs 714.74 Crore Cash Payment
Under the proposed settlement, SEBI has asked NSE to make a cash payment of Rs 714.74 crore.
In addition, Rs 776.47 crore that had already been deposited by the exchange will be adjusted against the total settlement amount of Rs 1,491.21 crore.
NSE said it had already made provisions for the entire settlement amount in its financial statements for the year ended March 31, 2026.
“The financial impact for the settlement amount of Rs 1,491.211 crore has already been provided for in the Financial Year ended March 31, 2026. However, the cash outflow towards the settlement will be Rs 714.74 crore. There is no other material adverse impact on the day-to-day operations of the Company,” the exchange said in its filing.
Settlement Covers Co-location and Dark Fibre Cases
The proposed settlement includes all pending regulatory proceedings relating to the co-location case, in which certain brokers were alleged to have received preferential access to the exchange’s trading systems.
It also covers the dark fibre matter, which involved allegations of preferential network connectivity being provided to select trading firms.
According to the exchange, once SEBI issues the final settlement order, the cases currently pending before the Supreme Court will be withdrawn.
Major Step Towards NSE IPO
The settlement is expected to clear one of the biggest obstacles to NSE’s proposed IPO, which has remained on hold for several years because of unresolved regulatory proceedings.
With the regulatory issues nearing closure, the exchange moves closer to launching its public issue.
The proposed NSE IPO is expected to be among the largest public offerings in recent years, and is likely to attract significant interest from investors.
