India’s premier stock exchange, the National Stock Exchange (NSE), has proposed a record settlement of $118 million to the Securities and Exchange Board of India (SEBI) in an attempt to resolve lingering regulatory disputes. This bold move is expected to unlock its stalled Initial Public Offering (IPO) plans, according to a source closely involved in the talks.

1. SEBI’s Deliberation in Progress
SEBI is currently reviewing the proposal, and a decision is anticipated soon. Although the regulator hasn’t officially commented, insiders suggest that SEBI is leaning toward accepting the offer. If approved, NSE would receive a no-objection certificate — a crucial prerequisite for any company planning to go public in India.

2. Regulatory Roadblocks Since 2015
NSE’s IPO journey has been delayed since 2015 due to allegations involving unfair access to its co-location servers by a few high-frequency trading firms. These violations led SEBI to shelve the IPO in 2016 and impose a six-month market access ban on the exchange, further complicating its capital market ambitions.

3. Partial Settlements Already Made
This is not the first time NSE has made amends. In October, the exchange paid $75 million to settle one of the multiple regulatory cases linked to preferential access. The current $118 million proposal is designed to comprehensively close all outstanding issues with the regulator.

4. Leadership and Regulatory Engagement
Momentum for a resolution picked up after SEBI’s newly appointed chairman, Tuhin Kanta Pandey, confirmed that the regulator is working collaboratively with NSE to address the bottlenecks affecting its IPO. His statement last week sparked renewed optimism around the long-delayed listing.

5. CEO Confirms Outstanding Issues
During its recent earnings call, NSE CEO Ashish Kumar Chauhan disclosed that SEBI had flagged four pending concerns, including unresolved legal matters. He reiterated the exchange’s commitment to resolve these quickly and meet regulatory expectations in full.

6. Investor Confidence Remains Strong
Despite the regulatory hurdles, investor confidence in NSE remains unshaken. With heavyweight backers like Life Insurance Corporation of India and the Canada Pension Plan Investment Board, the exchange has seen its private market valuation jump from $36 billion to $50 billion over recent months.

7. New Investment Vehicles Eyeing NSE
Reflecting this bullish sentiment, US-based Drew Investments is reportedly creating a special purpose vehicle (SPV) to invest in NSE shares, pricing them in the range of ₹1,550 to ₹1,700 per share (approximately $18.50 to $20.20 per share). This move suggests strong investor anticipation for the exchange’s eventual public debut.

8. Final Word: Listing Path Hinges on SEBI’s Nod
As SEBI prepares to deliver its verdict, the fate of India’s largest exchange IPO hangs in the balance. A favorable decision would mark the end of nearly a decade-long regulatory standoff and could usher NSE into the capital markets with full investor backing and renewed credibility.