NSE seeks SEBI approval for fresh listing after regulatory challenges

The National Stock Exchange of India (NSE) has sought fresh approval from the Securities and Exchange Board of India (SEBI) to move forward with its initial public offering (IPO) plans..This update, detailed in NSE's latest annual report, follows a series of regulatory challenges that have previously affected its listing efforts..At its recent Annual General Meeting, NSE disclosed that it had initially aimed to go public in 2016 but had to withdraw its IPO documents due to issues related to the co-location scam.In its April 2019 order, SEBI had imposed a significant penalty on the exchange amounting to over ₹1,000 crore with interest. Additionally, the regulator had barred NSE from raising funds through equity, debt, or other securities for six months. This restriction ended on October 30, 2019.However, due to a significant reduction in the number of shares offered for sale - specifically by more than 50% - SEBI required NSE to file new offer documents. As a result, the Draft Red Herring Prospectus (DRHP) submitted earlier was returned. Subsequently, NSE approached SEBI again in 2022, but was instructed to hold off at that time..Recent updates indicate that NSE has reignited its efforts to get listed. Despite the expiration of the previous restriction, NSE is still awaiting SEBI’s response to its latest request. The exchange has asked SEBI for a no-objection to proceed with its IPO plans and to refile the DRHP. As stated in its annual report, “NSE has requested SEBI to convey its no-objection to enable it to proceed with its initial public offer (IPO) plan and for filing the DRHP. Response from SEBI is awaited.”SEBI’s decision will be crucial for NSE's plans to list publicly and advance its financial strategy following a challenging regulatory period..In February 2022, SEBI had barred former NSE Chairperson Chitra Ramkrishna from associating with any market infrastructure institution or any intermediary registered with SEBI for a period of three years.The markets regulator found that she indulged in financial misdeeds relating to fixation and frequent revision of compensation of one Anand Subramanian in a disproportionate manner. Ramkrishna had bizzarely claimed that she was guided by a Siddha Purusha/Yogi dwelling in the Himalayas in making her financial decisions.The Central Bureau of Investigation (CBI) then filed a case against Ramkrishna and Subramanian, stating that while performing a public duty to protect the interest of common investors, the duo indulged in criminal conspiracy and caused huge advantage to various trading members/brokers.Ramkrishna and Subramanian were granted bail by the Delhi High Court in September 2022..[BREAKING] NSE co-location scam: Delhi High Court grants bail to Chitra Ramkrishna, Anand Subramanian in CBI case