Skip to main content

NSE top brass discusses IPO colocation with shareholders

NSE top brass discusses IPO colocation with shareholders
The National Stock Exchange (NSE) held a meeting with top shareholders to update them on the status of its much a waited initial public offering (IPO) and the pending regulatory issue with the Securities and Exchange Board of India (Sebi).The meeting, which took place on Tuesday, was addressed by the exchange´s top management, including Chairman Ashok Chawla and Managing Director and Chief Executive Officer Vikram Limaye.
Most of the domestic and foreign shareholders were other attendees, said sources in the know.The NSE´s Rs 10,000crore maiden offer to provide partial or full exit to 27 shareholders has got delayed by nearly a year due to a probe against it for giving unfair access to its colocation (colo) servers to some brokers.
In the past, certain shareholders had mounted pressure on the bourse´s management over the delay.A source present at the meeting said most stakeholders acknowledged that there was nothing much that the exchange could do to expedite the IPO as the matter is pending with Sebi. “There isaprocess that Sebi has to follow before it resolves the colo issue.
We understand that the ball is now in Sebi´s court.The exchange told us that they have submitted two audit reports to Sebi earlier this month.However, they refused to divulge the findings as the matter is confidential,” said another person who attended the meeting.
The country´s largest bourse had filed the offer document with Sebi for its IPO in December.The public offer, however, has been kept in abeyance till the colo issue is resolved.The NSE has filed a consent application with the market watchdog to settle the matter.
“Once the colo controversy is resolved, the exchange will refile for the offer document to incorporate all the material changes that have taken place since the last filing.We expect the refilling to happen in the June 2018 quarter based on 201718 financial numbers,” said a shareholder.
Sebi is likely to take into account the findings of all audit reports.The regulator has undert aken a forensic audit to ascertain if brokers and their clients made any profit by gaining preferential access.This will be critical in determining the settlement amount under the consent plea
Earlier this month, Sebi Chairman Ajay Tyagi had said, “We will see how we proceed, but we want to resolve it as soon as possible.”
The Business Standard, New Delhi, 30th November 2017

Comments

Popular posts from this blog

Shrinking footprints of foreign banks in India

Shrinking footprints of foreign banks in India Foreign banks are increasingly shrinking their presence in India and are also becoming more conservative than private and public sector counterparts. While many of them have sold some of their businesses in India as part of their global strategy, some are trying to keep their core expertise intact. Others are branching out to newer areas to continue business momentum.For example, HSBC and Barclays Bank in India have got out of the retail business, whereas corporate-focused Standard Chartered Bank is now trying to increase its focus on retail “Building a retail franchise is a huge exercise and takes a long time. You cannot afford to lose it,” said Shashank Joshi, Bank of Tokyo-Mitsubishi UFJ’s India head.According to the Reserve Bank of India (RBI) data, foreign banks’ combined loan book shrunk nearly 10 per cent from Rs 3.78 trillion in fiscal 2015-16 to Rs 3.42 trillion last financial year. The banking industry, which includes foreign banks…

GST Refund of Rs 20,000 Cr Pending: Exporters’ Body

GST Refund of Rs  20,000 Cr Pending: Exporters’ Body Refund of over Rs 20,000 crore on account of Goods and Services Tax (GST) is pending with the government with more than half the amount stuck as input tax credit, Federation of Indian Export Organisations said on Tuesday. While claims over Rs7,000 crore were cleared in March, the amount was Rs 1,000 crore in April.However, after exporters’ request, the GST council and tax department are organizing a second phase of Special Refund Fortnight starting May 31, which will enable exporters to draw their refunds at a speedy pace. Many exporters have been unable to file the refund of input tax credit due to technical glitches, exports and claim happened in different months. The major challenge lies on ITC refund especially because the process is partly electronic and partly manual which is cumbersome and add to the transaction cost, the exporters’ body said. On IGST, refunds are getting delayed due to airline and shipping companies not submitt…

RBI rushes in to prop up falling rupee

RBI rushes in to prop up falling rupee India’s central bank reportedly intervened in the currency markets on Monday to prevent a further slide in the local unit, which breached the 67 mark to a dollar for the first time in 15 months amid a widening trade gap and runaway import bills fuelled by high crude-oil prices. Some state-owned banks were seen selling dollars aggressively, interventions that market dealers attributed to the central bank’s strategy to stem the decline of the Indian rupee against the US currency. The rupee is the worst performing among a dozen Asian monetary units in the past three months. It lost 4.25 per cent to the dollar during the period, show data from Bloomberg. On Monday, the Reserve Bank of India (RBI) is said to have sold about Rs 800 million collectively on the spot and exchange traded futures markets, dealers said. An email sent to RBI remained unanswered until the publication of this report. The currency market has seen such a strong central bank interven…