The Securities and Exchange Board of India (Sebi) has requested the Delhi High Court to dismiss a petition seeking the listing of the National Stock Exchange (NSE). Sebi said it has not received a request from the NSE for a fresh no-objection certificate (NOC) for the listing of its shares.
The market regulator has sought the dismissal of the petition on grounds that it lacks merit and is framed as a public interest litigation.
The petition, filed by People Activism Forum, seeks the High Court to direct Sebi to grant permission for the initial public offering (IPO) of the NSE.
The exchange had first sought Sebi’s approval for the IPO in 2016. However, the offer document was returned in 2019 amid an ongoing investigation into the co-location scam and a reduction in the offer size by more than 50%.
After this, NSE has submitted at least three applications seeking the regulator’s NOC to file the draft IPO prospectus, with the latest in June 2022, according to court documents.
However, Sebi advised the NSE to address certain issues related to technology, governance, surveillance and trading lapses as a first-level regulator, inspection and off-site monitoring before its request for listing could be considered.
While NSE submitted its response to Sebi’s queries, the regulator said it has not expressly made a fresh request for the issuance of an NOC.
“Therefore, the allegations of delay on the part of respondent no. 2 (Sebi) with regard to permission for listing of shares of NSE are devoid of any merits,” Sebi said in its response to the writ petition.
Meanwhile, in a counter-affidavit on the matter, the NSE said that since it has been more than five years since Sebi returned the offer document, a fresh review may be warranted now for the listing of its shares.
In its response to the petition, Sebi also clarified that it has not asked NSE to remain glitch-free for a period of one year as a condition for launching the IPO.
Other conditions reportedly placed by the regulator on the NSE for launching its IPO include enhancing technological infrastructure, improving the corporate governance structure, and resolving pending legal matters.
The matter has been placed for further hearing on December 2. In the meantime, the petitioner, People Activism Forum, has been directed by the High Court to submit a rejoinder on Sebi’s response.
The matter has been scheduled for further hearing on December 2. In the meantime, the petitioner, People Activism Forum, has been directed by the High Court to submit a rejoinder to Sebi’s response.