SEBI Explains Hurdles In NSE IPO In Delhi High Court

The Securities and Exchange Board of India (SEBI) has responded to the National Stock Exchange's (NSE) request for approval to go public. SEBI had previously allowed NSE to list its shares, but due to problems with NSE's co-location facilities, SEBI imposed a six-month ban in 2019, which was later adjusted but maintained.

In its response, SEBI mentioned that it had paused the review of NSE's draft red herring prospectus (DRHP) due to an ongoing investigation into NSE's co-location practices, which were found to have violated regulations.

SEBI also clarified that it had asked NSE to resubmit the DRHP after making changes in 2019, and despite unresolved regulatory issues, NSE continued to seek approval for its IPO plan.

SEBI also clarified that it had not imposed any conditions on NSE, such as maintaining glitch-free operation for a year, as was incorrectly reported in a news article in December 2023.

In its reply, SEBI stated that the People Activism Forum is not directly involved in the regulatory proceedings concerning NSE and is not in a position to question the market regulator’s decisions.