National Stock Exchange clears path for IPO as Rs 643 crore settlement with SEBI finalised

National Stock Exchange ( NSE ) is on course to proceed with its long-awaited Initial Public Offering ( IPO ) following the conclusion of a Rs 643 crore settlement with the Securities and Exchange Board of India ( SEBI ). The settlement, the largest ever in SEBI ’s history, resolves accusations related to the alleged misuse of NSE ’s Trading Access Point (TAP) system, which surfaced as part of an ongoing investigation into the exchange’s practices.

This landmark settlement removes a major regulatory obstacle for the NSE , paving the way for its highly anticipated IPO . The exchange, which has been trying to launch its public offering since 2016, now looks set to move forward as legal proceedings tied to both the TAP misuse case and the high-profile co-location scam are officially closed. The case's conclusion brings clarity to the exchange's standing and sets the stage for new opportunities.

TAP Misuse Case Settlement

The settlement comes after SEBI raised concerns that certain high-frequency traders were able to manipulate the TAP system, which was in use from 2008 to 2019. This system gave specific traders an unfair advantage, bypassing fees and accelerating order execution. Despite allegations that NSE did not take sufficient action to prevent these practices, SEBI eventually closed the proceedings after NSE and its former executives, including former CEO Vikram Limaye, agreed to the settlement without admitting or denying any wrongdoing.

SEBI had initially ordered NSE to disgorge Rs 624.89 crore, but this amount was significantly reduced by the Securities Appellate Tribunal (SAT) to Rs 100 crore. The final Rs 643 crore settlement includes payments from NSE and the former executives, alongside a commitment from the latter to engage in pro bono community service.

IPO Process Set to Gain Momentum

Now that the regulatory hurdles have been cleared, market experts expect NSE to accelerate its IPO process, which had been stalled due to the ongoing legal issues. The exchange has already applied for a no-objection certificate (NOC) from SEBI to move forward with the IPO . This offering is expected to draw significant interest from both institutional and retail investors, given NSE ’s pivotal role in India’s financial markets.

The settlement comes on the heels of SEBI ’s withdrawal of charges against former NSE officials in the co-location scam, citing insufficient evidence. The IPO , once launched, will be one of the most anticipated in recent years, as NSE aims to tap into the growing interest in India’s financial market infrastructure.

What’s Next for NSE ?

With the Rs 643 crore settlement behind it, the NSE is now in a strong position to move forward with its listing. The public offering could bring NSE further into the spotlight as it seeks to solidify its position as one of the world’s leading stock exchanges.

Market observers will be watching closely as NSE prepares for its next phase of growth. The resolution of the TAP misuse case is seen as a win not only for the exchange but for the broader market, as it ensures that India’s largest stock exchange can move forward without lingering legal uncertainties.