Investors, led by the People Activism Forum, have petitioned the Delhi High Court to direct the Securities and Exchange Board of India (Sebi) to approve the National Stock Exchange’s (NSE) long-awaited initial public offering (IPO). The plea follows Sebi’s reluctance to issue a no-objection certificate (NOC) despite NSE reapplying on August 27, according to a report by The Economic Times.
The Forum alleged that Sebi has not provided valid reasons for withholding the NOC even after three months. Investors argue that this delay is preventing existing shareholders from realizing the value of their holdings and depriving the general public of investing in the country’s largest stock exchange. NSE shares, popular in the unlisted market, have surged from Rs 900 to Rs 1,800 this year, largely due to IPO speculation.
NSE had issued four bonus shares for every share in November 2024. Major shareholders are LIC with 10.72% stake, followed by Radhakishan Damani with 1.58%, Stock Holding Corporation and SBI Capital Markets 4.4% each, State Bank of India 3.23% and foreign investor Aranda Investments 5%.
The first petition was filed by the Forum in May this year, following which Sebi had asked NSE to reapply for NOC. However, the capital market regulator has opposed the fresh petition and argued that the Forum has no locus standi as the intervenor and such judgement may pave the way for a precedent of cases. Sebi also sought pending issues of the co-location scam as being one of the reasons for withholding clearance.
However, the NSE on its part claimed that it had met all the conditions and even submitted proofs for grant of NOC. The exchange had first filed an application for IPO in 2016 but later withdrew it in 2019 on account of probes into the co-location scam. Sebi had finally closed the case in September 2024 due to lack of sufficient evidence.
A Single Bench of the Delhi High Court has listed the matter for hearing on March 6, 2025. Investors thus expect an outcome from the hearings that will help accelerate the IPO and bring NSE into the ambit of stricter regulatory compliance required for a listed entity.
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Source: BS
News Desk
