NSE Says Waiting for SEBI Nod for its IPO
Moneylife Digital Team 02 August 2021
The National Stock Exchange (NSE) is waiting permission from market regulator Securities and Exchange Board of India (SEBI) for submitting draft red herring prospectus (DRHP) for its initial public offering (IPO).
 
In its annual report for FY20-21, the Exchange says, "NSE has requested SEBI to convey its no-objection to enable it to proceed with its IPO plan and for filing the DRHP. Response from SEBI is awaited."
 
Earlier in February 2019, while returning NSE's DRHP, SEBI had told the Exchange that as per the SEBI (Issue of Capital and Disclosure Requirements -ICDR) Regulations, any decrease in the number of shares offered for sale by more than 50% would require the fresh filing of offer document. 
 
Later, SEBI in its order on 30 April 2019 with respect to the co-location technology matter had passed certain directions prohibiting NSE from raising funds from the market, through the issuance of equity, debt or other securities for six months ending 30 October 2019.
 
The regulator at that time had also asked the exchange to disgorge an amount of Rs624.89 crore along with interest calculated at the rate of 12% per annum to the Investor Protection and Education Fund (IPEF). SEBI estimated that NSE earned a profit of Rs624.89 crore during 2010-11 to 2013-14 from its co-location operation.
 
“NSE has committed a fraudulent and unfair trade practice as contemplated under the SEBI (PFUTP) Regulations. It is established beyond doubt that NSE has not exercised the requisite due diligence while putting in place the TBT architecture,” the regulator noted. (Read: NSE Co-location Scam: SEBI Orders Disgorgement of Profits from NSE and Salaries of former MDs, Ravi Narain and Chitra Ramakrishna)
 
State run Life Insurance Corp of India (LIC) and State Bank of India (SBI) are among the top 10 stakeholders in NSE. As on 31 March 2021, LIC held a 10.71% stake, while SBI, the country's largest state-run lender has a stake of 3.22% in the Exchange. Other top shareholders of NSE include, Aranda Investments (Mauritius) PTE Ltd (5%), Veracity Investments Ltd, Mauritius (5%), Stock Holding Corp of India Ltd (SHCIL) (4.44%), SBI Capital Markets Ltd (4.33%), SAIF II SE Investments Mauritius Ltd (3.21%), GS Strategic Investments Ltd, Mauritius (2%), MS Strategic (Mauritius) Ltd (2.81%), PI Opportunity Fund (3%), Acacia Banyan Partners (2.50%), Tiger Global Five Holdings (1.33%) and Crown Capital Ltd (2.54%). 
 
During FY21-21, GAGIL FDI Ltd, sold its entire 3.79% stake in NSE, the annual report shows.
Comments
bharatbhai
3 months ago
stock should not be allowed to list after such frauds. it will dampen the confidence of public if they have not properly corrected anything and the fraud is continuing...
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