The windfall for this individual shareholder is accruing on account of an erroneous transfer of shares, according to NSE’s draft prospectus, which discloses that as many as 5,000 equity shares were incorrectly transferred and credited to the dematerialised (demat) account of an individual by the name Kashmiri Lal Rana, without any consideration being paid or a second purchase request.
The DRHP reveals that the NSE, along with Nuvama Wealth Finance, is now embroiled in a legal dispute with Rana for not returning the 5,000 NSE shares erroneously credited to his demat account in December 2023. Interestingly, one of the defendants in the suit is the National Securities Depository Ltd (NSDL).
The exchange has alleged that by the time it discovered the erroneous share transaction, Rana had sold off 3,685 of those 5,000 shares. Now, they have sought a recovery of ₹1.43 crore representing the sale proceeds from those shares, along with a mandatory direction from the Delhi High Court to transfer the remaining 1,315 shares, along with the 5,260 bonus shares which accrued to Rana from those balance holdings.
While the Delhi High Court had in May 2025 directed Rana to restrain from selling the remaining shares, the matter is still pending.
Even as this legal battles lingers on, the NSE DRHP reveals another legal wrangle that has emerged weeks before its DRHP filing — a writ petition filed in May 2026 in the Bombay High Court raising concerns around the beneficial ownership of certain Mauritius-based investors in NSE.
A petitioner named Parinay Sharma has filed a writ petition in the Bombay HC against the Securities and Exchange Board of India (Sebi) and NSE following a representation letter filed by Sharma with the market regulator.
Sharma has alleged that certain investors have invested in NSE through Mauritius-based entities instead of direct investments to conceal the beneficial owners from regulatory scrutiny, and non-disclosure of beneficial owners of the foreign entities holding NSE’s shares.
“The Petitioner alleged, among others, that Sebi had failed to take any action pursuant to the Representation. The Petitioner sought, among others, a writ of mandamus directing Sebi to decide the pending Representation, a direction against our Company seeking disclosure of its promoter group and shareholders/ ultimate beneficiaries with KYC documents and a stay on our Company’s initial public offering process until final disposal of the Petition. The matter is currently pending,” noted NSE in the DRHP.
According to sources, this matter may be heard next week.
Show-cause from RoC, Maharashtra
Amongst the list of pending issues, there’s another key matter where the exchange has attributed non-compliance to non-receipt of approval from the market regulator Securities and Exchange Board of India (Sebi).
In January this year, the Registrar of Companies, Maharashtra, issued show-cause notices to NSE for its failure to appoint a woman director within the prescribed period, and failure to re-constitute the nomination and remuneration committee. The matter stems from a suo motu adjudication by the RoC in October 2024. NSE responded to the notices, submitting that both the defaults were attributable to non-receipt of approval from Sebi.
At present, NSE’s board has two women as public interest directors, namely Justice (Retd.) Abhilasha Kumari and Prof. (Dr.) Mamata Biswal.
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