NSE Proposes Rs 1,388 Crore Settlement to SEBI to Resolve Co-Location & Dark Fibre Cases

The National Stock Exchange (NSE) has submitted two settlement applications to the Securities and Exchange Board of India (SEBI), offering a total of ₹1,388 crore to resolve its long-standing co‑location and dark fibre disputes. This landmark offer is the largest ever by any entity seeking consent with India’s markets regulator.

• Rs 1,165 crore has been proposed to settle the co‑location case, where NSE allegedly provided certain brokers with preferential access via high-speed servers.
• An additional Rs 223 crore is earmarked for the dark fibre issue, involving unauthorised private fibre connections used to gain trading speed advantages.

Originating from SEBI’s 2019 fine against NSE (₹1,100 crore) for uneven access to trading members, both disputes have severely delayed NSE’s long-awaited IPO.

If SEBI approves this settlement and it’s ratified by the Supreme Court, NSE could receive an IPO no-objection certificate within three months.

NSE’s delayed listing stems from its first IPO papers in 2016 facing regulatory resistance amid governance and technical scrutiny. Despite setbacks, NSE remains India's premier derivatives market player, backed by major stakeholders such as LIC, SBI, Morgan Stanley, and CPPIB.

A SEBI nod following settlement would mark a major milestone—potentially allowing the bourse to launch its IPO before May 2026.

Clears a major roadblock: Resolving these high-profile cases removes key regulatory obstacles blocking NSE’s IPO.

Sets a precedent: The Rs 1,388 crore figure is the largest settlement to date in SEBI’s history.

Boosts confidence: A positive resolution reinforces investor trust in India's capital markets infrastructure.