 "NSE")
The Delhi High Court has directed the Securities and Exchange Board of India (Sebi) and the National Stock Exchange of India (NSE) to file replies to a writ petition filed by People Activism Forum for expediting the initial public offer (IPO) of NSE.
In the petition to the court, People Activism Forum has submitted that there is no hindrance to ‘enlisting of shares of NSE with Sebi’ as the six-month prohibition imposed by the market regulator following the order on colocation matter expired in October 2019.
“It is directed that the respondents shall file their short note of submissions with respect to their objections, along with the documents that they wish to reply upon,” said Delhi HC in an order dated May 22. The court has sought replies within four weeks and scheduled the matter for August 14.
The counsel representing Sebi said the writ petition was not maintainable with respect to a regulatory procedure. He added that the petition was filed in the nature of a Public Interest Litigation (PIL) under the garb of a writ petition, which is in violation of the rules.
Over the years, NSE’s IPO has been in limbo due to several ongoing litigations.
In the colocation matter, the Securities Appellate Tribunal (SAT) set aside Sebi’s direction on disgorgement of Rs 625 crore and upheld on-monetary directives in its final order issued in January 2023.
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The tribunal imposed a penalty of Rs 100 crore on NSE as a deterrent for the lack of due diligence.
The Supreme Court also rejected the application for a stay on the SAT order filed by Sebi on the collocation matter.
NSE has also got some relief in the dark fibre matter from SAT in which the market regulator had issued another order. However, proceedings regarding the governance and conflict of interest matters challenging Sebi’s orders are pending for final hearing and disposal by SAT.
Several other appeals too are pending in the Supreme Court for final disposal.
Sebi had also issued a show-cause to NSE last year in May on the charge of connivance and collusion with OPG Securities and its directors with NSE employees in the colocation matter. While a personal hearing in the matter was concluded in February, the order is awaited.
NSE is also awaiting acceptance of a settlement plea in the Trading Access Point matter.
The market regulator tends to approve IPOs of companies only if serious pending litigations are resolved.
While NSE awaits Sebi’s nod for IPO, its shares are actively traded in the unlisted market. Earlier this month, shares of NSE had climbed to Rs 6,000 apiece, valuing the country’s largest bourse at Rs 3.2 trillion.
NSE recently announced a four-for-one bonus issue and a dividend of Rs 90 per share.
