NSE IPO: Exchange Sets Aside Rs 1,300 Crore to Settle Sebi Cases as Market Listing Draws Closer

The National Stock Exchange of India (NSE) is making significant strides toward its long-anticipated IPO. Here are the key developments:

– Profit Decline: For the September quarter, NSE reported a consolidated profit after tax of Rs 2,098 crore, a decline of 33% year-on-year from Rs 3,137 crore, primarily due to lower trading volumes and a one-time provision.

– Settlement Fund: To resolve long-standing regulatory issues, NSE has set aside Rs 1,300 crore to settle pending cases with the Securities and Exchange Board of India (Sebi). This fund aims to eliminate hurdles that have hindered the NSE’s public listing since 2016.

– Applications Filed: The exchange submitted two settlement applications totaling Rs 13.87 billion with Sebi, initiating a process that could lead to an IPO once approved.

– Historic Provision: NSE acknowledged its first-ever provision for settlement in its Q2 FY26 earnings report. The provision includes interest related to settled applications concerning Colocation and Dark Fibre matters.

– Litigation Context: This move comes after a 2019 penalty of Rs 1,100 crore by Sebi, accusing NSE of failing to provide equal access to all trading members.

– Financial Performance: Excluding the settlement provision, adjusted profits stood at Rs 3,396 crore—reflecting a 16% sequential increase. NSE’s revenues from transaction charges fell 12% due to a decline in trading activity, with average daily volumes for equity options down 16%.

– Looking Ahead: NSE’s Managing Director, Ashishkumar Chauhan, stated that they anticipate listing on Dalal Street in the next Samvat 2082, pending Sebi’s no-objection certificate (NOC).

In summary, the NSE is strategically positioning itself for a successful IPO by addressing regulatory challenges and improving financial performance. With the regulatory hurdles on the verge of resolution, investors are keenly watching for updates on the anticipated market listing.