NSE sets aside ₹1,300 crore to settle Sebi cases ahead of long-awaited IPO

National Stock Exchange of India [NSEI.NS], the operator of the country's biggest bourse, said on Tuesday it has set aside nearly 13 billion rupees ($148 million) to settle cases pending with the markets regulator as it seeks to push ahead with a long-delayed IPO.

NSE, the world's most active derivatives exchange, has been embroiled in litigation with the Securities and Exchange Board of India since 2019, when it was fined 11 billion rupees for failing to provide equitable access to all trading members.

The provision signals an imminent settlement of the pending litigation, which has been one of the biggest hurdles in its long-pending public listing.

Mumbai-headquartered NSE has been seeking to go public since 2016, but its listing efforts have been stalled due to ongoing regulatory investigations. Its main domestic rival, BSE Ltd, listed in 2017.

NSE said it has filed two separate settlement applications for a total amount of 13.87 billion rupees for the cases, and recognised its first-ever provision in its second-quarter results.

DECLINING PROFITS

NSE reported a consolidated net profit of 20.98 billion rupees for the quarter, down 33 per cent from 31.37 billion rupees a year earlier, due to a decrease in trading volumes.

The consolidated revenue from transaction charges in the second quarter for fiscal 2026 was 27.85 billion rupees, a sequential decline of 12 per cent quarter-on-quarter due to a drop in volumes across cash market and derivatives segments, NSE said in a press statement.

SEBI has taken a series of steps in the past few months to cool down India's derivatives trading frenzy, resulting in reduced options trading activity on NSE.

Average daily trading volume for equity options in terms of premium stood at 464.42 billion rupees, down 16 per cent quarter-on-quarter, NSE said.