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Nse IPO likely to be delayed for a year due to investigations: report

The initial public offering (IPO) of the National Stock Exchange (NSE) could be delayed for up to a year due to the investigation into irregularities during the tenure of its former managing director (CEO) Chitra Ramkrishna, reported The economic period.

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

“SEBI is unlikely to give the green light to NSE to go public with the current situation and it may take another year or so to clean up the whole system. is likely in the coming months from from various agencies. Until then, the regulator may not consider NSE’s request to be made public,” said a senior official at an investment bank quoted in the report.

The NSE had filed its Draft Red Herring Prospectus (DRHP) more than half a decade ago on December 28, 2016. The exchange had planned to list shares with an offer to sell of 111.4 million shares by existing stock exchange investors.

But SEBI had asked the exchange to withdraw its DRHP over investigations into the colocation scam that came to light after a whistleblower sent a letter exposing the issue to the market regulator.

SEBI had issued show cause notices to fourteen current and former senior executives of the stock exchange in 2017, including Chitra Ramkrishna and Ravi Narain, former Managing Director and CEO.

The NSE is the largest stock exchange in India with a total market capitalization of over $3.4 trillion. NSE shares have quadrupled in the past two years on the back of strong earnings. The exchange announced a 56% increase in net profit year-on-year for the fiscal year ending December 2021.


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