NSE co-location, dark fibre cases: SEBI agrees 'in-principle' to settlement pleas, Pg21

Key Highlights:

• SEBI has agreed 'in-principle' to the settlement applications filed by the NSE in co-location and dark fibre cases.
• The settlement involves a cumulative amount of Rs 1,387.39 crore for the settlement of co-location and dark fibre cases.
• NSE had set aside Rs 1,297.41 crore in provisions related to these matters during the quarter ended September 30, 2025.
• SEBI is in talks with the Ministry of Corporate Affairs to explore regulating the unlisted share market.

Detailed Insights:

• The move is expected to expedite NSE's IPO application, which has been awaiting SEBI's approval since filing its draft red herring prospectus in 2016.
• The allegations against NSE involved preferential access to some brokers through the co-location facility, early login, and dark fibre, initially raised by a whistle-blower in January 2015.
• SEBI is considering regulating the unlisted share market due to it being a grey area with no oversight, with regulation currently beginning only when a company plans to list.
• SEBI's Chairman raised concerns about recurring disclosure gaps in IPO offer documents, which reduce transparency and investor understanding.

Key Concepts Involved:

• Co-location facility: Data center facility offered by exchanges to stock brokers for faster access.
• Dark fibre: Passive optical cables used to convey data between two points.
• Unlisted shares: Shares of companies not listed on any stock exchanges, traded over-the-counter.