Sebi says NSE may have to file for IPO again

NEW DELHI: Sebi Chairman Ajay Tyagi on Monday said the National Stock Exchange (NSE) will refile Red Herring Prospectus (DRHP) with the market regulator that would comprise a new financial statement, media reports suggested.

Tyagi, told reporters on the sidelines of an event, the prospectus may need to be re-submitted to reflect updated financials.

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, ET had reported.

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".

An internal investigation by the NSE, another by a SEBI expert team and one by forensic auditor Deloitte have failed to nail culpability on anyone though external auditors have said the exchange’s systems were vulnerable, ET reported.

Securities and Exchange Board of India ( SEBI )

National Stock Exchange of India Ltd (NSE)