Homemarket News

NSE IPO likely to be delayed by a year amid investigations: Report

NSE IPO likely to be delayed by a year amid investigations: Report

NSE IPO likely to be delayed by a year amid investigations: Report
Profile image

By CNBCTV18.com Feb 21, 2022 1:16 PM IST (Published)

The investigation into NSE’s former officials' alleged violation of several securities rules by the Central Bureau of Investigation (CBI) and the Income Tax Department will delay the IPO, said the report.

The initial public offering (IPO) of the National Stock Exchange (NSE) may be delayed by up to a year due to the investigation into the irregularities committed during the tenure of its former Chief Executive Officer (CEO) Chitra Ramkrishna, reported The Economic Times.

Recommended Articles

View All

The investigation into NSE’s former officials' alleged violation of several securities rules by the Central Bureau of Investigation (CBI) and the Income Tax Department will delay the IPO, said the ET report, citing bankers.


"SEBI is unlikely to give its nod to NSE to go public at the current situation and it may take another year or so to clean up the entire system. More action on all those involved in the co-location scam and violation of securities contract rules is likely in the coming months from various agencies. Until then, the regulator may not consider NSE's request to go public," a top official at an investment bank was quoted as saying in the report.

The NSE had filed its draft red herring prospectus (DRHP) over half a decade ago on December 28, 2016. The bourse had been planning to list shares with an offer for sale of 111.4 million shares by existing investors of the bourse.

But the SEBI had asked the exchange to withdraw its DRHP due to the investigations into the co-location scam which had come to light after a whistleblower sent a letter exposing the issue to the market regulator.

SEBI had issued show-cause notices to fourteen high-ranking current and former executives at the exchange in 2017, including Chitra Ramkrishna and Ravi Narain, former MD and CEO.

The NSE is the largest bourse in India with a total market capitalisation of more than $3.4 trillion. The shares of the NSE have increased by fourfold over the past two years on the back of strong profits. The stock exchange reported a 56 percent YoY jump in net profit for the financial year ending December 2021.

Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!

Most Read

Market Movers

View All
Top GainersTop Losers
CurrencyCommodities
CompanyPriceChng%Chng