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Why NSE IPO took so long NSE first moved towards an IPO in 2016, when it sought Sebi’s approval for a listing and later filed draft papers. But the plan ran into the co-location controversy, which became the biggest overhang on the exchange’s public market debut. The case centred on allegations that some brokers got preferential access to NSE’s trading servers through its co-location facility. The issue later widened into related matters, including dark fibre access, and kept the exchange under regulatory and legal scrutiny for years. In 2019, Sebi directed NSE to disgorge Rs 624.89 crore along with interest in the co-location matter, according to reports. This order did not end the matter. NSE challenged the regulatory findings, and the case moved through appeals and tribunal proceedings. Also Read: NSE IPO: Exchange didn't move an application to trade on its own platform, says CEO Ashish Chauhan The Securities Appellate Tribunal (SAT) stayed parts of Sebi’s disgorgement directions and later set aside certain orders, while Sebi took the matter further to the Supreme Court. This kept the legal overhang alive and delayed the IPO, even though the exchange continued to grow as a business. A fresh effort to settle the cases began in 2025. NSE filed settlement applications with Sebi in June 2025 covering the co-location and dark fibre matters. The exchange initially proposed a cumulative settlement amount of Rs 1,387.39 crore, according to reports. The settlement proposal was later revised. NSE’s IPO papers disclosed that the exchange had proposed to pay Rs 1,491 crore to settle the long-pending co-location and dark fibre matters with Sebi. These disclosures formed part of the material litigation section of the draft offer documents, making it clear that the old cases were still central to the IPO approval process. A major breakthrough came this year. NSE said in July that Sebi had granted in-principle approval to settle certain past regulatory lapses, subject to payment of Rs 1,491 crore. The settlement of the co-location and dark fibre cases helped remove one of the biggest hurdles before the IPO. The final legal hurdle eased earlier this month. The Supreme Court accepted the settlement terms between Sebi and NSE in the co-location and dark fibre cases and disposed of Sebi’s pending appeals. This removed one of the most important hurdles before the IPO. What investors may get The proposed IPO will be entirely an offer for sale. This means NSE will not raise fresh capital from the issue. Instead, existing shareholders will sell part of their holdings to public investors. The exchange is central to India’s equity and derivatives trading ecosystem. NSE is the world’s largest derivatives exchange by contracts traded. It is also India’s largest stock exchange and runs the Nifty 50, the country’s most tracked equity benchmark. NSE was valued at about Rs 4.9 lakh crore in the unlisted market. The issue is priced at around Rs 1,785 per share at the upper end of the price band. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
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