NSE Moves Closer to IPO as SEBI Settlement Panel Finalises Penalty in Co-Location Case: Reports

National Stock Exchange is on the verge of resolving a near decade-long regulatory standoff, with an external panel appointed by the Securities and Exchange Board of India recommending a settlement of slightly over ₹18 billion ($192.5 million), according to a report by Reuters.

The recommended figure exceeds the ₹13 billion NSE had provisioned in late 2024 to cover potential settlement costs. SEBI is expected to issue a formal demand letter to the exchange before passing a final order to close out the proceedings, Reuters reported.

The settlement, if accepted, would draw a line under long-pending allegations against NSE centred on governance failures and inequitable access to its trading infrastructure; infractions that have kept the exchange off the public markets for close to ten years despite it being the country's largest unlisted company, with an estimated 190,000 shareholders.

NSE is also the world's largest derivatives exchange by contract volume.

With a resolution now in sight, the exchange has moved quickly on its listing plans. Last month, it appointed 20 banks to manage its IPO; the highest number of book-running managers assembled for any public issue in India. The appointed banks have since written to existing investors, inviting them to tender shares in the offer, with expressions of interest due by April 27. The exchange may file its draft prospectus as early as next month, once its annual financial results are out, the Reuters’ report said.