National Stock Exchange reapplies for IPO
The National Stock of Exchange (NSE) India Ltd may get the approval of the Securities and Exchange Board of India (SEBI) for the Initial Public Offering (IPO), according to reports. In 2019, NSE was previously barred by the regulatory body to raise funds for at least 6 months and asked to deposit Rs 1,200 crore for some investor fund. According to the livemint, some NSE brokers were found to have secured preferential server access using NSE's co-location service. After Sebi found this, the National Stock Exchange withdrew its IPO application.
NSE to get IPO approval by Sebi: What we know
- An Initial Public Offer (IPO) is the selling of securities to the public in the primary market. It is the largest source of funds with long or indefinite maturity for the company.
- After initially withdrawing the application for IPO in 2019, the National Stock Exchange reapplied for IPO in January 2020.
- According to livemint, a Sebi official said, as of today, the number of pending regulatory actions and investigations against NSE has reduced. In some cases, quasi-judicial proceedings are underway.
- Based on these developments, Sebi might give its assent.
- State Bank of India group, IDBI, Norwest Venture Partners, Life Insurance Corporation of India, GS Strategic Investments Ltd (Mauritius) are among NSE shareholders who are willing to sell stakes worth 22-24 per cent.
- There are two issues that are still under probe. 1) Alleged irregularities in re-appointment of NSE's Chief Strategic adviser Anand Subramanian as chief operating officer and adviser to managing director, by NSE's former managing director and CEO Chitra Ramakrishna
