NSE IPO survives High Court hurdle

New Delhi: The Delhi High Court on Monday rejected a petition challenging the no-objection certificate (NOC) granted by the Securities and Exchange Board of India (Sebi) for the proposed IPO of the NSE. Justice Jasmeet Singh said while rejecting the public interest litigation that former judicial officer KC Aggarwal had filed the petition only to “interdict the exchange’s IPO”.

He further said that both Sebi and NSE are based in Mumbai and that the NOC for the IPO was granted there. Sebi had on Jan 30 allowed the NSE to kick off the IPO process-appoint bankers and legal advisers and start drafting the listing documents.

Challenging the Sebi’s approval for the IPO, Aggarwal argued that the NSE had violated the stock market regulator’s framework on corporate action adjustments, introduced to ensure value neutrality in derivatives trading during bonus issues, stock splits and extraordinary dividends.