NSE Sets Aside ₹13 Billion for Settlement, Signaling Progress Toward Long-Delayed IPO
The National Stock Exchange of India (NSE), the country’s largest stock exchange operator, has earmarked nearly ₹13 billion ($148 million) to settle cases pending with the Securities and Exchange Board of India (SEBI), marking a major step toward its long-awaited initial public offering. The provision, disclosed in its second-quarter results, indicates an imminent resolution to long-standing litigation dating back to 2019, when NSE was fined ₹11 billion for failing to ensure equitable access to trading members.
NSE, the world’s most active derivatives exchange, has been seeking to go public since 2016, but regulatory hurdles have delayed the move. The exchange has now filed two separate settlement applications totaling ₹13.87 billion, reflecting its intent to close the chapter on regulatory disputes and revive its IPO plans. Its main domestic rival, BSE Ltd., went public in 2017.
In its latest financial results, NSE reported a consolidated net profit of ₹20.98 billion for the quarter, a 33% decline from ₹31.37 billion a year earlier, citing reduced trading volumes. Transaction revenue dropped 12% sequentially to ₹27.85 billion as SEBI’s recent measures to temper India’s derivatives trading boom led to a 16% quarter-on-quarter fall in equity options trading volumes.
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