“We are examining the legal aspects of the (NSE) IPO,” Tyagi said adding that the regulator will take a call soon. He was speaking on the sidelines of NSE’s launch of RFQ (Request for Quote) Platform in debt securities.
NSE has approached markets regulator Sebi for its initial public offering and hopes to launch the public issue by September this year, subject to approvals, PTI had reported on January 6.
“We have approached Sebi to seek its approval for the IPO and after that we will start the process of appointing merchant bankers, who will help the exchange in filing draft prospects for the IPO,” the report said quoting NSE Managing Director and CEO Vikram Limaye.
NSE has revived its listing plans, which were on the backburner following a probe by Sebi against the exchange and some of its top officials. It was alleged that the exchange misused its co-location facility and gave preferential access to certain trading members.
In April 2019, Sebi had barred NSE from accessing the capital markets for a period of six months. It had also asked NSE to disgorge more than Rs 625 crore along with 12 per cent interest per annum in connection with the co-location case.
Earlier in December 2016, NSE had filed draft papers with Sebi for its much-awaited IPO. The initial share-sale was expected to garner Rs 10,000 crore.
Separately, Tyagi said the markets regulator had sought comments from Franklin Templeton Mutual Fund, when they marked down Vodafone Idea’s securities to zero, even before they were downgraded below investment grade.
Last month, Franklin Templeton Mutual Fund decided to segregate the bonds of Vodafone Idea held by its debt schemes, effective January 24, after ratings firms cut the telecom company’s securities below the investment grade.
Prior to this, the fund house had marked down these securities to zero. That move came on a day when Supreme Court rejected the company’s plea to review payment of licence fee based on a wider definition of adjusted gross revenue.
“We had asked for their comments. It is fund houses’ domain to take a view on its asset value and formulation,” said Tyagi.
Tyagi. He added that they were not yet approached for an IPO of Life Insurance Corporation of India (LIC).
“Any owner who want to list, they have to go through the same process. Right now no formulation has come to us, it’s premature for me to say (anything),” he told reporters.
