SEBI panel backs NSE settlement in co-location case

SEBI's high-powered advisory committee (HPAC) has recommended approval of National Stock Exchange's (NSE) settlement application, which covers both the co-location and dark fibre matters. The exchange had filed its settlement application on June 20, 2025, offering ₹1,387.39 crore, but sources indicate the amount under consideration by the committee is higher, at around ₹1,880 crore. The recommendation has moved to SEBI's whole-time members for final approval. Upon approval, the regulator is expected to issue a demand notice, following which both SEBI and NSE would approach the Supreme Court of India to withdraw pending appeals linked to the case. This development is significant for NSE's proposed public listing, as SEBI had issued a no-objection certificate for the IPO subject to disclosures around ongoing litigation. The co-location case relates to allegations that certain brokers received preferential access to NSE's trading systems. The exchange's listing has been delayed for years due to regulatory issues stemming from the co-location controversy, and closure of these cases is critical for regulatory compliance and improving governance perception.

(Source：The Hindu - Business Line)