Another new hurdle in NSE's IPO
Know the main points and gist of the news at a glance
New Delhi. The listing of India's largest stock market exchange, the National Stock Exchange of India (NSE), has hit a new hurdle. The discussion about NSE going public has been going on for about ten years. But the exchange is facing another obstacle in this journey. A writ petition has been filed in the Delhi High Court challenging the No-Objection Certificate (NOC) issued by the Securities and Exchange Board of India (Sebi) for the proposed Initial Public Offering (IPO) of NSE. What is this petition and who has filed it, let us know.
Who filed the petition and why?
According to media reports, 72-year-old KC Aggarwal, a resident of New Delhi and former judicial officer, has filed this petition on February 10. In this, questions have been raised on SEBI's clearance of January 30. This could further extend the wait for NSE listing. The exchange has been trying to go public since 2016, but repeated regulatory scrutiny and past controversies have put the plan on hold. The Delhi High Court is expected to hear the matter on Monday or later this week, and its decision is likely to impact the next steps in the NSE listing saga.
What is the argument given in the petition?
According to media reports, Agarwal's petition focuses on SEBI's Corporate Action Adjustment (CAA) framework, which was introduced to ensure "value neutrality" in derivatives trading during bonus issues, stock splits and extraordinary dividends. In simple words, this means that there should be no change in the economic position of derivatives traders before and after such corporate action. Aggarwal alleges that NSE violated this framework. Instead of adjusting both price and quantity, NSE simply changed the price, and directly debited the accounts of derivatives traders, including Aggarwal, an amount equal to the dividend.
'Debit is against the law'
Under the Securities Contracts (Regulation) Act, dividends are payable only to shareholders and not to derivatives traders. "Therefore, the debit in question is against the law," the petition said. Agarwal said his complaints at the NSE were closed without a hearing, and SEBI upheld the exchange's action without an independent review. He further said that Right to Information (RTI) requests seeking details of debited funds were repeatedly rejected, creating a "complete information vacuum", and emails sent to the SEBI chairperson till January 2026 remained unanswered.
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(Disclaimer: Here is information about an upcoming IPO, not investment advice. Jagran Business is not giving investment advice. Investing in the stock market is subject to market risks, so please consult a certified investment advisor before investing.)
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