Mumbai: The long-pending National Stock Exchange (NSE) initial public offer (IPO) could start moving again, with an expert panel agreeing to a proposal by the country’s largest bourse to make the biggest payment ever to settle cases that have been a key stumbling block.
The Securities and Exchange Board of India (Sebi) expert panel on settlement orders has approved NSE’s application to settle the colocation and dark fibre cases for about ₹1,800 crore, said people aware of the development. The IPO has faced repeated delays due to regulatory and legal hurdles.
“The high-powered advisory committee met recently and approved NSE’s settlement applications. Their recommendations will now be put up before the panel of two whole-time members of Sebi,” said one of the persons cited.
The four-member expert committee on settlement orders is chaired by Jai Narayan Patel, former chief justice of the Calcutta High Court. The other members are N Venkatram, country chair of Canadian pension fund CDPQ; SK Mohanty, former Sebi member; and Sarit Jafa, former deputy comptroller and auditor general.
An NSE spokesperson declined to comment. Sebi didn’t respond to queries.
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Step Towards Closure “It moves a long-pending, high-profile regulatory case toward closure, reducing uncertainty in the markets and reflects a pragmatic approach by Sebi to achieve faster enforcement and finality instead of prolonged litigation,” said a senior Supreme Court lawyer. “It also clears the decks for a smoother IPO, restoring regulatory certainty.”
The wait for the IPO has been one of India’s most prolonged and closely watched, with the first application submitted to Sebi on October 18, 2016.
The regulator initially withheld approval due to concerns related to a colocation case, governance lapses at the bourse, and issues with its technology infrastructure.
Since then, NSE has repeatedly approached Sebi for clearance. After Tuhin Kanta Pandey took charge as Sebi chief in March 2025, he formed an internal committee to examine the NSE IPO issue. Subsequently, in June last year, NSE filed two applications with Sebi to settle the long-pending colocation and dark fibre cases by offering to pay over Rs 1,300 crore – Rs 1,165 crore for the first and Rs 223 crore for the second. In January this year, Pandey said the regulator had agreed in principle to NSE’s settlement application.
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