Awaiting Sebi response, says NSE chief Ashishkumar Chauhan on IPO

Says the exchange is in consultation for increasing market trading timing

India’s largest bourse, National Stock Exchange (NSE), is awaiting approval from the Securities and Exchange Board of India (Sebi) following the relief in the co-location matter, subsequent to the responses the exchange filed on queries raised by the regulator.
 
In his second investor call after taking charge as the bourse's managing director and chief executive officer (MD & CEO), Ashishkumar Chauhan on Wednesday offered updates on the course of the IPO and the decision to move away from non-core businesses.
 
“..they (Sebi) had written to us about various issues which we have replied to in this quarter. We await their response in this regard,” he said.

 

According to sources, Sebi will be appealing the Securities Appellate Tribunal (SAT) order dated January 23, which set aside Rs 625-crore disgorgement order by the regulator on NSE. The regulator's appeal may delay the plans further.
 
“Many other legal matters are pending across many other courts, which may or may not have an impact. They may or may not be connected to this case. We have no information,” Chauhan added.
 
NSE’s market capitalisation as of December 31, 2022 stood at Rs 56,000 crore.
 
NSE is yet to receive over Rs 1,000 crore deposited with the market regulator in the colocation matter which SAT has ordered to be released. However, the exchange has considered Rs 100 crore penalty by the SAT as an expense for the quarter.

 
In the investor call for the previous quarter, NSE had said that it will be moving away from non-core businesses, which contribute nearly 6 per cent of the revenues.
 
Chauhan informed the investors that the process, as suggested by the Mahalingam Committee, is expected to be completed in ‘due course of time’.
 
Moving ahead, NSE will not participate in unrelated activities or businesses that Sebi has not allowed. However, it does have plans to enter carbon trading once it is allowed by the regulator. NSE is working on increasing its activity in bonds, bond futures, electricity futures, commodities, and mutual funds.

 
The exchange has also started consultation towards increasing market trading hours in the equity segments, in line with what many other markets follow.
 
“Sebi has already allowed equity market timing to be extended to 9 a.m. to 5 p.m., maximum. In derivatives, they have allowed from 9 a.m. to 11:55 p.m. We have not moved forward. Now, we are working with our members and taking their feedback on what all needs to be done,” said Chauhan.
 
The bourse is working on increasing space in its co-location facility in Mumbai, said Chauhan. Revenues from the co-location unit stood at Rs 161 crore, up 7 per cent quarter-on-quarter.

 
NSE reported a 55 per cent jump in its consolidated net profit to Rs 1,826 crore for the quarter ended December 2022. Revenues rose 35 per cent to Rs 3,263 crore led by a healthy increase in transaction charges.