Whalesbook
Regulatory Hurdles
SEBI has granted in-principle approval for the National Stock Exchange to settle the protracted co-location and dark fibre disputes for ₹1,388 crore. This move, executed under SEBI's settlement regulations, represents a significant step toward unlocking NSE's decade-long stalled initial public offering (IPO) plans.
Supreme Court's Role
However, the path forward is legally complex. Because SEBI is itself an appellant before the Supreme Court regarding an earlier Securities Appellate Tribunal (SAT) order, the regulator cannot unilaterally close the matter. Legal experts indicate that SEBI must file an application seeking permission from the Supreme Court to withdraw or dispose of its appeal in line with the settlement terms. This process ensures the settlement is placed before the court for scrutiny, confirming its lawfulness and alignment with public interest.
Path to Listing
Once the Supreme Court formally records the settlement, the final regulatory barrier for NSE's IPO is expected to be removed. Following this judicial acknowledgment, NSE can refile its draft red herring prospectus (DRHP). The exchange will then proceed through SEBI's disclosure review and likely seek in-principle listing approval, typically from the BSE, before commencing book-building and its eventual listing. Legal experts caution this judicial process could add several months.
Expert Outlook
While SEBI chairperson Tuhin Kanta Pandey recently suggested an IPO no-objection certificate could be issued within a month, legal professionals advise caution. Unconditional NOC issuance is unlikely until the Supreme Court disposes of the appeal. The settlement route is widely seen as the most pragmatic approach, offering procedural finality and safeguarding investor confidence by securing a judicial nod.