NSE unlisted share price: Stock exchange offers Rs 1,388 cr to settle co-location, dark fibre cases

Unlisted shares of National Stock Exchange (NSE) are in focus on Wednesday, as the stock exchange filed two applications with the market regulator Securities and Exchange Board of India (Sebi) to settle the persisting co-location and dark fibre cases by offering to pay a total Rs 1,388 crore. If accepted, this would be the highest amount offered by any entity to settle a case till date.

The unlisted NSE stock last quoted in the range of Rs 2,325-2,400 range today. The settling of cases could clear path for NSE to file draft papers for its long-awaited initial public offer (IPO).  

The stock exchange first filed draft papers for IPO with Sebi in 2016, aiming to sell a 22 per cent stake for Rs 10,000 crore. That said, the plans got derailed by regulatory issues stemming from 2015, when a few high-frequency traders were alleged to have received unfair access to NSE’s co-location servers. 

Sebi Chairman Tuhin Kanta Pandey recently said that there was no obstacle remaining in the case of the NSE, adding that the exchange and the markets regulator were settling some of the key issues. “There is some legal settlements and other things. Some amount will have to be paid and those cases would have to be withdrawn, and so on,” he reportedly said at FE CFO Awards. 

During its May 7 earnings call, NSE MD & CEO Ashishkumar Chauhan confirmed the exchange had responded to Sebi’s February 28 letter and formally requested the NOC required to initiate the IPO. Chauhan noted that lack of regulation on clearing corporation disinvestment and key managerial personnel (KMP) salaries could delay progress.

Chauhan added that while NSE has operated without major disruption since 2021, any pending legal matters would be disclosed in the Draft Red Herring Prospectus (DRHP). “Legal issues pending before the Supreme Court will need resolution, but beyond that, there are no major hurdles,” he said. 

NSE unlisted shares were earlier in focus after Sebi agreed to the expiry day proposed by NSE i.e. Tuesday. NSE said it would keep the expiry day of derivatives contracts unchanged for already introduced contracts - with the exception of long dated index options contracts for which equity exchanges would suitably realign expiry day. NSE said it would continue with present expiry day (Thursday) for derivative contracts which expire on or before August 31, 2025, but will change the expiry day of the derivatives contracts which expire on or after September 01, 2025 to Tuesday.

From September 01, 2025, the monthly contracts would expire on the last Tuesday of the month, it said.