Plea in Delhi HC to expedite NSE IPO; court seeks reply from Sebi, NSE

Delhi High Court Seeks SEBI and NSE's Response on Speeding Up NSE IPO

Expert Analysis

• Court Directive: The Delhi High Court directed SEBI and NSE to respond to a writ petition filed by People Activism Forum to expedite NSE's IPO.

• Petition Argument: The petition argues that there are no hindrances to listing NSE shares, as SEBI’s six-month prohibition expired in October 2019.

• SEBI’s Counsel Argument: SEBI’s counsel claims the petition is a misclassified PIL and not maintainable.

• IPO Delays: NSE’s IPO has been delayed due to multiple litigations, including:

  • Colocation Matter: A Rs 625 crore disgorgement in the colocation matter.

  • Penalty Imposed: A Rs 100 crore penalty imposed by SAT.

  • Ongoing Proceedings: Ongoing proceedings regarding governance and conflict of interest matters.

• Unlisted Market Value: NSE shares in the unlisted market reached Rs 6,000 each, valuing the exchange at Rs 3.2 trillion.

• Bonus Issue and Dividend: NSE announced a four-for-one bonus issue and a Rs 90 per share dividend.

• Next Hearing: The Delhi HC has scheduled the next hearing for August 14.