NSE Sets Aside ₹1,297 Crore for SEBI Settlement Ahead of Long-Pending IPO
The National Stock Exchange (NSE) has set aside ₹1,297 crore in the September quarter (ended 30 September 2025) as a provision toward settlement applications filed with the Securities and Exchange Board of India (SEBI) in connection with the co-location and dark-fibre cases — a critical step as the bourse seeks to move forward with its long-delayed IPO.
Financial Highlights
Excluding the provision, NSE’s profit rose 8% year-on-year (YoY) to ₹3,396 crore.
The exchange reported consolidated total income of ₹4,160 crore, compared with ₹4,798 crore a year earlier.
“The consolidated revenue from transaction charges stood at ₹2,785 crore, a sequential decline of 12% due to lower volumes in both the cash and derivatives segments,” the NSE said.
On a consolidated basis, operating EBITDA stood at ₹1,484 crore, down from ₹3,130 crore YoY.
However, excluding the SEBI-related provision, operating EBITDA was ₹2,782 crore, reflecting a robust margin of 76%.
Awaiting SEBI Response
“Revert from SEBI on the above-mentioned settlement applications is awaited, and the future outcome remains uncertain at this stage,” NSE said.
Consequently, the exchange recorded a 28% sequential and 33% year-on-year decline in profit after tax to ₹2,098 crore.
The settlement process is viewed as crucial for unlocking NSE’s IPO, which has been pending since 2016 due to unresolved regulatory matters.
Details of the Settlement Applications
NSE’s notes to accounts stated that during the half-year ended September 30, 2025, the company filed two separate settlement applications with SEBI for a cumulative amount of ₹1,387.39 crore concerning the:
Colocation WTM Order and AO Order, and
Dark Fibre WTM Order and AO Order.
“In light of the pending outcomes of the above settlement applications, the board of directors has deferred other related legal proceedings, pending SEBI’s decision,” the company added.
Accordingly, NSE recognised a ₹1,297.41 crore provision (including interest) during the quarter ended September 2025.
This is in addition to ₹100 crore previously imposed by the Securities Appellate Tribunal (SAT) in the Colocation WTM appeal, which has already been adjusted against the amount deposited with SEBI.
Implications for NSE’s IPO Path
The resolution of SEBI’s co-location and dark-fibre cases is expected to be the final hurdle before NSE’s long-awaited listing.
Analysts believe that once these settlements are concluded, the bourse could reignite plans for a multi-billion-rupee IPO, potentially making it one of India’s largest market listings.
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