The Delhi High Court on Monday dismissed a legal challenge to the Securities and Exchange Board of India’s (SEBI) no‑objection certificate (NOC) for the National Stock Exchange’s (NSE) proposed initial public offering (IPO), effectively clearing a major judicial hurdle and allowing the long‑awaited listing process to proceed.

Justice Jasmeet Singh rejected a petition filed by former judicial officer KC Aggarwal, holding that the writ was aimed at blocking or delaying the IPO rather than raising substantiated legal concerns. The court noted that both SEBI and the NSE are headquartered in Mumbai — the jurisdiction where the NOC was granted — and therefore were appropriate for any legal review, reaffirming the legitimacy of SEBI’s regulatory decision.

SEBI issued the contested NOC on January 30, allowing the NSE to restart its preparations for a public listing after nearly a decade of delays. That clearance enabled the exchange to appoint merchant bankers and legal advisers and begin drafting the required offer documents, marking a key advance in its transition from a member‑owned body to a publicly listed company.

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The petition against SEBI’s approval centred on allegations that the NSE had violated the regulator’s Corporate Action Adjustment framework — rules intended to ensure “value neutrality” for derivatives traders during corporate actions such as bonus issues, stock splits and extraordinary dividends. Aggarwal claimed the exchange only adjusted contract prices, not quantities, and debited dividend‑equivalent amounts from traders’ accounts, assertions SEBI and the court found unpersuasive.

NSE’s IPO bid has been one of the most closely watched developments in Indian capital markets. The exchange first filed IPO paperwork in October 2016, but its plans were repeatedly stalled due to governance concerns, including the high‑profile co‑location case involving preferential server access and issues related to internal controls and technology systems.

With the High Court’s ruling upholding SEBI’s NOC, the exchange’s listing process — which could culminate in a Draft Red Herring Prospectus (DRHP) filing by March or early April — stands on firmer ground. Market participants and investors will now closely monitor the next regulatory and commercial steps as the NSE moves closer to a potential public debut.

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