Mumbai: Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey on Friday said the regulator has internally approved the proposed settlement in the long-pending National Stock Exchange (NSE) co-location case.
Speaking to reporters, Pandey said the settlement proposal has received internal approval and the issue is expected to reach closure soon.
“Internally, the NSE settlement has been approved. The matter will be resolved soon,” he said.
The development comes just days after NSE filed its draft red herring prospectus (DRHP) for its much-awaited initial public offering (IPO), marking a significant step towards a public listing that has been delayed for nearly a decade due to regulatory and legal hurdles.
The co-location case has remained one of the most significant unresolved issues linked to the exchange.
A settlement of the matter is widely seen as a key milestone in clearing the path for NSE’s proposed IPO.
In its DRHP, NSE disclosed that it has made a provision of Rs 1,391 crore towards the proposed settlement with SEBI in connection with the co-location matter.
The exchange also stated that a revised settlement amount of Rs 1,491 crore has been proposed and is awaiting final regulatory approval.
The filing indicated that the exchange has been working towards resolving the long-standing regulatory issue, which has remained under scrutiny for several years.
According to the DRHP, both the Supreme Court appeals and the settlement applications in the co-location-related matters remain pending.
Together, the revised settlement proposals in the co-location and dark fibre cases amount to Rs 1,491.21 crore.
The actual additional cash outflow for NSE may be lower, as the exchange has already deposited substantial sums with SEBI.
As per its financial disclosures published in August 2024, deposits with the market regulator stood at around Rs 1,107 crore.
(IANS)
