NSE members want preferential treatment in Rs10,000 crore IPO
New Delhi: NSE members are keen to get a pie in the top exchange’s estimated Rs10,000 crore IPO and want preferential treatment even as the fate of the much-delayed share sale hangs in the balance due to an ongoing probe.
At a recent meeting held with the National Stock Exchange, the ANMI (Association of National Exchanges Members of India) said the NSE members should be given preferential offers to subscribe to the shares in the public offer.
The exchange had filed draft papers with Sebi in December last year for the IPO, but the regulator has put it on hold presumably due to the ongoing probe into alleged lapses relating to the co-location matter.
The exchange was earlier expecting the share sale to take off this fiscal, but it may get delayed as the probe is still on. In the meantime, the exchange has also sought to settle the matter with Securities and Exchange Board of India (Sebi) under the consent mechanism, which provides for settlement of a case without admission or denial of any wrong-doing.
At the meeting, the brokers’ body also sought better communication between the ANMI and the NSE in the wake of the recent technical glitch at the exchange, which saw trading getting suspended for over three hours in July.
The ANMI stressed that there is need for a better and quick communication channel with the industry, particularly ANMI, to better deal with cases like technical glitches.
It added that there must be a nodal person at the exchange who is going to be always available to the ANMI so that the communication is quick and effective.
The country’s largest bourse NSE had on July 10 this year halted trading for over three hours due to a technical snag. Investors faced problems in executing trade and the exchange stopped trading in cash as well as futures and options (F&O) segment.
The ANMI is a pan-India body comprising trading members across the country of the National Stock Exchange, the BSE and other exchanges with national presence.
The NSE is the largest stock exchange in India in terms of total and average daily turnover for shares.