Chairman of the Securities and Exchange Board of India (SEBI) Ajay Tyagi on Monday said, the National Stock Exchange (NSE) may need to re-submit its application, the Red Herring Prospectus (DRHP), for an initial public offering with new financial statements, according to reports.
NSE had filed its draft red herring prospectus in December, but SEBI has delayed approval as it probes the NSE’s disclosure that some brokers may have been given unfair access to its servers. Tyagi, told reporters in the sidelines of an event, the prospectus may need to be re-submitted to reflect updated financials.
According to the Economic Times, the news has come in the backdrop of ongoing investigations into whether the stock exchange gave some of its clients a preferential access to servers at its co-location centre between 2010 and 2014. Tyagi in late April had said that the IPO was not happening immediately and could take a few months.
Sebi recently issued show cause notices to the exchange as well as 14 individuals, including former managing directors Chitra Ramakrishna and Ravi Narain. While Chitra resigned from the exchange in December 2016, Narain, who was the vice-chairman, quit on June 2.
The initial public offer of NSE has gone into an indefinite limbo even as the exchange and the regulator negotiate a massive consent order of between Rs 250 crore and Rs 500 crore. The regulator in a letter of May 31 asked the exchange to stop the issue “as certain regulatory/policy issues are under examination.”