Capital markets regulator Securities and Exchange Board of India’s (SEBI) high-powered advisory committee (HPAC) has recommended approval of National Stock Exchange’s settlement application in the co-location and dark fibre cases, according to sources.
The exchange had filed its settlement application on June 20, 2025, offering ₹1,387.39 crore. However, sources said the amount under consideration by the committee is higher, at around ₹1,880 crore, covering both the co-location and dark fibre matters.
“The recommendation has come through and the matter is now with the competent authority,” a person familiar with the development said, adding that the proposal has moved to SEBI’s whole-time members for final approval. This development effectively clears a major procedural stage in the settlement process.
The final decision will be taken by SEBI’s whole-time members. Upon approval, the regulator is expected to issue a demand notice, following which both SEBI and NSE would approach the Supreme Court of India to withdraw pending appeals linked to the case.
Access allegations
The co-location case relates to allegations that certain brokers received preferential access to NSE’s trading systems, enabling faster access to market data. The matter has been under regulatory and judicial scrutiny for several years, with parallel proceedings in the appellate and judicial forums.
The latest move assumes significance in the context of NSE’s proposed public listing. SEBI had, on January 30, 2026, issued a no-objection certificate allowing the exchange to proceed with its IPO, subject to disclosures around ongoing litigation.
IPO mandate
NSE appointed 20 banks as merchant bankers to its IPO in March. People aware of the IPO preparations said the exchange is working towards filing its draft red herring prospectus after declaring its financial results, with timelines pointing to the month of May.
NSE has also reached out to existing shareholders to gauge interest in participating in the offer for sale. The co-location settlement, if cleared, would mark one of the largest such payouts in India’s securities market and potentially pave the way for NSE to advance its long-delayed listing plans.
The exchange’s listing has been delayed for years due to regulatory issues stemming from the co-location controversy. Market participants said closure of these cases is critical not just for regulatory compliance but also for improving governance perception and ensuring smoother investor participation in what is expected to be a closely tracked public issue.
Published on April 22, 2026