NSE urges market regulator Sebi to take a 'fresh view' on much-delayed IPO

In 2019, Sebi returned NSE’s draft red herring prospectus (DRHP) filed in December 2016 and advised it to make a fresh filing after resolving the investigation into the colocation matter. NSE submitted an affidavit dated June 19, stating that complete resolution of all pending cases may not be feasible at this juncture as some are already before the Supreme Court. NSE also mentioned that they have been compliant with all disclosure guidelines laid down by Sebi. The Delhi High Court has scheduled the next hearing in the matter on August 14, after directing NSE and Sebi to submit their replies within four weeks during an earlier hearing in May.

The IPO of NSE has been delayed due to ongoing legal issues involving colocation, dark fiber, and governance problems. NSE has stated that most of these matters are close to being resolved and do not reflect the current governance and regulatory standards. NSE has also highlighted instances such as the listing of Vodafone Idea (FPO) and Aadhar Housing Finance securities on the stock exchanges in India in April-May 2024, where Sebi approved the publication of RHP despite pending litigations. People Activism Forum has petitioned the court stating that there are no obstacles to the listing of NSE shares with Sebi, as the six-month prohibition imposed by the market regulator expired in October 2019. NSE has emphasized that rival exchanges BSE and MCX, as well as major global exchanges, are already listed, and their shares are freely traded worldwide. NSE believes that listing will bring transparency and efficiency to its operations, with the board and management being accountable to shareholders, thus improving corporate governance and credibility among institutions and investors through compliance with regulatory norms.