Mumbai (Maharashtra) [India], July 31 (ANI): The Securities and Exchange Board of India (SEBI) has agreed in principle to settle all pending regulatory proceedings against the National Stock Exchange (NSE) for a total settlement amount of Rs 1,491.21 crore, removing a major regulatory hurdle for the exchange's long-awaited initial public offering (IPO).

According to an NSE disclosure, the market regulator has agreed to settle all outstanding matters, including the co-location and dark fibre cases, subject to the exchange complying with the settlement terms.

The exchange said SEBI has demanded a cash payment of Rs 714.74 crore in addition to adjusting Rs 776.47 crore already deposited by NSE towards the total settlement amount of Rs 1,491.21 crore.

NSE said it has already made provisions for the entire settlement amount in its financial statements for the year ended March 31, 2026. However, the actual cash outflow towards the settlement will be Rs 714.74 crore.

NSE filing says, 'The financial impact for the settlement amount of Rs 1,491.211 crore has already been provided for in the Financial year ended March 31, 2026. However, the cash outflow towards the settlement will be Rs. 714.74 crore. There is no other material adverse impact on the day-to-day operations of the Company.'

The settlement covers long-pending regulatory proceedings related to the co-location case, which involved allegations that certain brokers received preferential access to the exchange's trading systems, and the separate dark fibre matter concerning alleged preferential network access for select trading firms.

The exchange said that once SEBI issues the settlement order, the cases pending before the Supreme Court will be withdrawn.

The development is expected to pave the way for NSE's proposed IPO, which has remained pending for several years due to unresolved regulatory issues.

NSE IPO is expected to be one of the biggest IPO in recent years with wider interest from investors. (ANI)