NSE settles co-location dispute with Rs 1,491 crore agreement

The National Stock Exchange (NSE) has approved a settlement of Rs 1,491.21 crore with the Securities and Exchange Board of India (SEBI) in co-location and dark fiber cases. The Supreme Court settled these petitions on Thursday.

NSE had already deposited Rs 714.74 crore with SEBI in July. Additionally, Rs 776.47 crore was also paid. With the recent payment, the total amount of Rs 1,491.21 crore has been fully paid.

The co-location and dark fiber cases relate to allegations that some stock brokers obtained market data in an unfair and preferential manner ahead of other investors.

Some reports claimed that after being listed on NSE and Bombay Stock Exchange (BSE), they could trade on their own exchange under the 'Permitted to Trade' category. However, self-listing is not allowed under the current regulatory framework.

According to a note by PL Capital, if there is no improvement in the cash market share, this move by NSE could impact BSE's earnings by about 1 to 2 percent in the financial year 2027.

Sundaraman Ramamoorthy stated, "NSE has confirmed that no supplementary document will be issued for self-trading along with the offer document." He also said, "Despite seeking permission in 2017, BSE was not allowed to trade on its own exchange."