NSE to get no-objection certificate for IPO by month-end, says Sebi chief

Key Highlights

• NSE’s IPO hit a roadblock due to the dark fibre case, which involved allegations that certain high-frequency traders received preferential access to the exchange’s co-location servers between 2010 and 2014 through faster private communication lines, enabling quicker trade execution.
• In April 2019, Sebi directed NSE to disgorge ₹62.58 crore in alleged unlawful gains and barred senior officials from market-related roles.
• Sebi also imposed a ₹7 crore penalty in 2022, which was later set aside by the Securities Appellate Tribunal.
• Sebi subsequently challenged the SAT order before the Supreme Court in September 2023 and February 2024.
• Unlike ordinary companies, market infrastructure institutions, such as stock exchanges, depositories and clearing corporations, are required to obtain a no-objection certificate from Sebi before submitting their draft red herring prospectus.