The National Stock Exchange has submitted a fresh application to the Securities and Exchange Board of India seeking an IPO no objection certificate, according to people familiar with the matter. The move comes after SEBI informed the Delhi High Court about the absence of a new application from NSE.
The NSE had previously asked SEBI to reconsider its decision blocking the IPO in response to a petition from the People Activism Forum, which seeks to accelerate the approval process.
In earlier proceedings, SEBI had suspended its review of NSE’s draft red herring prospectus (DHRP) due to an ongoing investigation into NSE’s co-location practices. The investigation revealed that NSE failed to ensure a fair trading environment, leading to SEBI imposing a six-month ban in 2019. Although this ban was later modified, it still impacted NSE’s IPO plans.
SEBI’s response to NSE’s affidavit in the high court submitted that the DRHP was returned on February 5, 2019, due to significant changes in the offer size and the reduction in the number of shares and shareholders. SEBI advised NSE to resubmit the DRHP once the regulatory issues were resolved. Despite NSE’s continued efforts to gain approval, including submissions in November 2019 and July 2020, SEBI maintained its position due to unresolved issues related to technology, governance, and compliance.
On July 1, 2022, SEBI identified further operational issues within NSE, advising the exchange to address these concerns before proceeding with the IPO request. NSE responded to SEBI’s queries on Nov 24, 2022, and May 14, 2024, but did not include a fresh request for an IPO no objection certificate. Consequently, SEBI argued that any claims of delay in granting IPO permission were not justified.