The Securities and Exchange Board of India (Sebi) has informed the Delhi High Court that the National Stock Exchange (NSE) has not submitted a new request for a no-objection certificate (NOC) for its listing.
In response to a writ petition seeking to expedite NSE’s initial public offering (IPO), Sebi clarified that the delay lies with NSE, not the regulator.
Sebi had sent queries to NSE, which were addressed by the exchange in May 2024, during which NSE did not expressly request the NOC for listing its shares.
Sebi had in 2019 returned NSE’s draft red herring prospectus (DRHP), filed in December 2016, and advised it to make a fresh filing upon resolution of the investigation in the colocation matter (colo).
NSE had again, in June 2022, sought Sebi’s approval for allowing listing. A month later, Sebi responded with observations on issues around technology, governance, surveillance, and trading, along with lapses as a first-level regulator, inspection, and off-site monitoring.
NSE had submitted its responses first in November 2022 and then again in May this year.
The regulator has also clarified that it has not set the condition for NSE to remain glitch-free for one year as reported in the media.
Sebi has requested the court to dismiss the plea, arguing that it is inappropriate to direct a statutory regulator on how to perform its duties and make decisions.
Additionally, Sebi also refused to disclose information on its investigations, stating that such information could adversely affect the market, competitive position, and benefit third parties.
It added that the petition by People Activism Forum was an ‘act of an outsider to derail regulatory proceedings’.
In its latest earnings call for the June quarter, NSE’s MD and CEO Ashishkumar Chauhan told analysts that there was no clarity on its IPO.
Interestingly, in a submission made in June, NSE had urged the market regulator to revisit its stance on allowing it to go public.
The exchange had said that most of the litigation matters were on the verge of reaching their finality and might not reflect the governance and regulatory norms to which it is currently subjected.
It added that it has been compliant with all disclosure guidelines laid down by Sebi.
The Delhi High Court may next hear the writ petition in December.
The shares of NSE in the unlisted market are trading at Rs 6,200 apiece, nearly doubling from their levels a year ago, according to data on UnlistedZone. However, the prices have cooled from Rs 6,500 levels reached in May.
The exchange had announced a bonus issuance last quarter, for which shareholder approval has been obtained, but Sebi’s nod is still awaited.
For the June quarter, NSE reported 39 per cent year-on-year (Y-o-Y) growth in consolidated profit to Rs 2,567 crore, led by a 51 per cent surge in revenues from operations to Rs 4,510 crore for the quarter ended June 30, 2024 (Q1FY25).
First Published: Aug 14 2024 | 5:37 PM IST
