Nse Co-location Case Settlement Cleared Internally, Resolution Expected Soon: Sebi Chief

In a pivotal move for India's financial markets, the Securities and Exchange Board of India (SEBI) has internally approved the settlement in the protracted National Stock Exchange (NSE) co-location case. SEBI Chief Tuhin Kanta Pandey confirmed on June 19, 2026, that this significant internal clearance paves the way for NSE to finally move forward with its long-delayed Initial Public Offering (IPO), bringing a decade-long regulatory overhang closer to resolution. This development comes just days after NSE filed its Draft Red Herring Prospectus (DRHP) on June 17, 2026, wherein it disclosed a revised settlement proposal of Rs 1,491.21 crore to SEBI, encompassing both the co-location and dark fibre issues. The co-location scandal, first exposed by a whistleblower in 2015, alleged preferential access and unfair advantage given to certain high-frequency traders on NSE platform, leading to concerns about market integrity and governance lapses. While the Securities Appellate Tribunal (SAT) had previously overturned a SEBI disgorgement order, the matter was pending before the Supreme Court, making this settlement a critical step in clearing the regulatory hurdles. With internal regulatory approval secured, the focus now shifts to the final formalization of the settlement terms and any remaining legal imprimatur from the Supreme Court. This resolution is expected to accelerate NSE much-anticipated IPO, potentially one of India's largest, with roadshows projected to commence in the next two months and a targeted listing before December 2026. Market participants will be keenly watching for these final procedural clearances, which could unlock substantial value for existing investors and mark a new chapter for India's premier stock exchange.