The Securities and Exchange Board of India (SEBI) has granted in-principle approval to the National Stock Exchange of India (NSE) to settle long-standing regulatory cases for ₹1,491.21 crore. The agreement clears the single largest legal hurdle for the country’s premier bourse as it accelerates preparations for its long-awaited initial public offering (IPO).
The settlement resolves proceedings tied to the high-profile co-location and dark-fibre cases, which involved allegations of governance lapses and failure to provide equal market access to all trading members. Under the agreed-upon terms, the settlement allocates ₹1,223.6 crore toward the co-location case and ₹267.7 crore to close the dark-fibre investigation.
SEBI has demanded an additional cash payout of ₹714.74 crore, while adjusting the remaining ₹776.47 crore from funds previously deposited by the exchange. NSE noted that the total financial impact of ₹1,491.21 crore was fully provided for in its financial results for the fiscal year ended March 31, 2026, ensuring that the remaining payment will not adversely affect its routine operations.
The regulatory resolution ends years of litigation that stalled the exchange’s public listing plans. With the primary enforcement proceedings moving toward formal closure, the NSE is expected to receive regulatory clearance for its draft IPO prospectus, paving the way for what could become one of India’s largest-ever stock market debuts.
