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The NSE IPO is likely to raise up to $1 billion

Foreign investors in NSE urge bourse not to challenge big fine

  • Foreign investors have urged NSE to focus on its IPO
  • NSE is awaiting legal advice before deciding whether to appeal against Sebi's order to the Securities Appellate Tribunal

Mumbai: Some foreign investors in the National Stock Exchange (NSE), which the market regulator has slapped with a steep fine and a six-month ban from public fundraising, are urging the bourse not to challenge the penalty and instead focus on doing a long-awaited initial public offering.

The Securities and Exchange Board of India (Sebi) on Tuesday ordered the country's largest stock exchange to pay about $100 million, plus interest, after finding that it had failed to ensure equal access for all brokers to its network servers.

NSE said it was reviewing the order and awaiting legal advice before deciding whether to appeal against Sebi's order to the Securities Appellate Tribunal.

But foreign investors in NSE, who have been pushing the exchange to go public, said they fear that an appeal would further delay its plans for an IPO that bankers had estimated could raise up to $1 billion.

Also read: What’s in a financial ratio? Just an additional 350 crore fine for NSE

The NSE originally planned a public offering in 2017 but it was delayed due to Sebi's investigation into whether bourse employees provided unfair access to some brokers to its co-location servers, which are placed at the site of exchanges to speed up algorithmic trading.

Also read: Ajay Shah colluded to misuse NSE data for commercial purposes: Sebi

This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed