Home / Business and Economy / NSE IPO Clears Delhi Court Hurdle
NSE IPO Clears Delhi Court Hurdle
16 Feb
Summary
- Court dismissed petition against NSE IPO due to jurisdiction.
- Former judicial officer alleged NSE violated derivative trading rules.
- NSE IPO faces ongoing delays due to regulatory and governance issues.
The Delhi High Court has dismissed a petition that sought to block the National Stock Exchange's (NSE) initial public offering (IPO). The plea, filed by former judicial officer K.C. Aggarwal, challenged the Securities and Exchange Board of India's (Sebi) approval for the NSE's listing. The court determined it lacked the territorial jurisdiction to hear the case, as the relevant approvals were granted in Mumbai, where both Sebi and the NSE are headquartered.
Aggarwal had accused the NSE of violating corporate action adjustment (CAA) frameworks for derivative traders. He alleged that the exchange improperly adjusted prices and debited dividend-equivalent amounts from traders' accounts, rather than adjusting both price and quantity as required for value neutrality. The petitioner also claimed his complaints were not properly heard and that Sebi failed to conduct an independent review.
The dismissal by the Delhi High Court removes a crucial legal impediment for the NSE's long-awaited IPO. The exchange's listing has been postponed for years due to various regulatory concerns, including those related to its technology systems, compliance processes, and the high-profile co-location case.
