Supreme Court permits settlement of NSE co-location cases with SEBI
The relief comes as NSE’s ₹22,562-crore IPO is open for subscription
The Supreme Court of India recently allowed a settlement between the Securities and Exchange Board of India (SEBI) and the National Stock Exchange (NSE) regarding co-location cases dating back a decade. This marks the end of a long-standing dispute over allegations that certain brokers received preferential access to NSE's co-location infrastructure and market-data feeds.
The matter, which also included issues related to dark-fibre and leased-line connectivity, originated from a SEBI order in 2019 directing NSE to disgorge ₹625 crore along with 12% annual interest from April 1, 2014. NSE had challenged this order before the Securities Appellate Tribunal, which subsequently set aside SEBI's disgorgement order.
SEBI then challenged the tribunal's decision in the Supreme Court. In July 2026, SEBI accepted NSE's settlement applications covering the co-location and dark-fibre matters, leading to NSE paying ₹1,491.21 crore under SEBI's consent mechanism. With the Supreme Court's recent decision on September 21, 2026, legal and regulatory uncertainty surrounding the exchange has been resolved.
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