NSE has to be glitch-free for at least a year to get IPO approval, says SEBI
The Securities and Exchange Board of India (SEBI) has imposed several conditions on the National Stock Exchange (NSE) for its proposed initial public offering (IPO), including ensuring glitch-free operations for at least a year. The market regulator wants NSE to enhance its technological infrastructure, improve the corporate governance structure and resolve pending legal matters.
NSE’s listing has been delayed by several years after the exchange got embroiled in corporate governance issues, ranging from its former executive’s role in the 2015 co-location scam to issues with respect to multiple technological failures.
In 2021, NSE had to halt trading for several hours after its mainframe and disaster recovery sites malfunctioned, leading to intense scrutiny from SEBI.
As per the shareholding pattern as on September 30, the non-public shareholding of NSE stands at 44.03 percent against the prescribed limit of 49 percent. Public holding stands at 55.97 percent against the minimum prescribed limit of 51 percent. The last proposed auction of NSE’s shares was at Rs 3,150.
