NSE IPO: Exchange sets aside Rs 1,300 crore to settle Sebi cases as market listing draws closer

In a decisive move toward its long-delayed stock market debut, the National Stock Exchange of India (NSE) has earmarked Rs 1,300 crore to settle regulatory cases pending with the Securities and Exchange Board of India (Sebi), clearing one of the biggest hurdles in its nine-year-long pursuit to list on Dalal Street.

The country’s largest bourse and the world’s most active derivatives exchange said on Tuesday it has filed two separate settlement applications totalling Rs 13.87 billion for pending cases with the market regulator. The exchange also recognised its first-ever provision for this purpose in its second-quarter earnings, signalling an imminent resolution to regulatory overhangs that have stalled its public listing since 2016.

“NSE has recognised a provision of Rs 1,297 crore in Q2 FY26, including interest, towards the settlement applications that NSE had filed with SEBI under SEBI (Settlement Regulations) 2018 with respect to Colocation and Dark Fibre matters,” the exchange said, adding that a response from the regulator is awaited.

The move follows years of litigation with Sebi stemming from a 2019 penalty of Rs 1,100 crore for allegedly failing to provide equitable access to trading members. The settlement, once approved, could pave the way for the exchange’s long-awaited initial public offering.

Declining profits weigh on Q2 results

For the quarter ended September, NSE reported a consolidated profit after tax of Rs 2,098 crore, down 33% year-on-year from Rs 3,137 crore, hurt by lower trading volumes and the one-time provision. Excluding the settlement charge, adjusted profit stood at Rs 3,396 crore, a 16% rise quarter-on-quarter.Consolidated total income fell 17% year-on-year to Rs 4,160 crore from Rs 5,023 crore in the same period a year earlier. On a half-yearly basis, NSE reported a PAT of Rs 5,022 crore, while adjusted PAT excluding the Sebi provision came in at Rs 6,320 crore, compared with Rs 5,704 crore in the first half of FY25.NSE’s revenue from transaction charges fell 12% sequentially in Q2 FY26, reflecting a slowdown in trading activity. The exchange said average daily trading volume for equity options in terms of premium dropped 16% quarter-on-quarter to Rs 464.42 billion, amid regulatory measures aimed at cooling India’s derivatives frenzy.

IPO timeline hinges on Sebi nod

Ashishkumar Chauhan, managing director and chief executive officer of NSE, recently told ET Now that the exchange could list its shares on Dalal Street in the next Samvat 2082 once it receives Sebi’s no-objection certificate.

Also read | NSE Q2 Results: Cons PAT falls 33% YoY to Rs 2,098 crore, revenue declines 18%

“We have great hopes that in the new Samvat we should be able to list. We are still waiting for the NOC from SEBI. Once SEBI gives NOC, 8–10 months is the plan we have… As NOC comes soon, we shall be able to list soon,” Chauhan told ET Now during the Muhurat Trading session on October 21.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)