NSE IPO May Face Fresh Delay as Delhi High Court Petition Challenges SEBI's NOC

As per The Economic Times report, the National Stock Exchange of India (NSE) faces a new legal obstacle that could push back its long-awaited public listing.  

A writ petition filed in Delhi High Court challenges the Securities and Exchange Board of India’s (SEBI) no‑objection certificate (NOC) issued on February 30, 2026. 

Legal Challenge Over Derivative Adjustments 

The petition, lodged on February 10, 2026, by former judicial officer KC Aggarwal, alleges that NSE breached SEBI’s Corporate Action Adjustments (CAA) framework.  

The framework requires both price and quantity of derivative contracts to be adjusted during corporate actions so that traders’ economic positions remain unchanged.  

Aggarwal claims NSE altered only prices and debited dividend‑equivalent amounts directly from traders’ accounts, an action he says is ultra vires under the Securities Contracts (Regulation) Act. 

Petition Details and Court Proceedings 

Aggarwal states his complaints to NSE were closed without a hearing and that SEBI upheld the exchange’s actions without an independent review. Right to Information requests for details of the debited funds were repeatedly rejected, creating an information vacuum.  

The writ seeks regulatory accountability, enforcement of statutory duties and an interim restraint to prevent irreparable prejudice to public investors. Delhi High Court is expected to hear the matter later this week. 

Read More: NSE IPO Committee Selects Rothschild to Manage Listing Process! 

Regulatory Background and Previous Delays 

NSE has been pursuing an IPO since October 18, 2016. Earlier, SEBI reviews withheld approval due to concerns over co‑location practices, governance lapses, and technology infrastructure.  

After SEBI chief Tuhin Kanta Pandey formed an internal committee in March 2025, the regulator granted the NOC on January 30, 2026, allowing NSE to appoint bankers and legal advisers. 

Potential Impact on IPO Timeline 

If the court issues an interim restraining order, NSE may be required to pause the drafting of listing documents and the appointment of advisers.  

Such a development could extend the IPO timeline beyond the current expectations, affecting the schedule for potential investors and market participants. 

Conclusion 

The legal petition raises questions about NSE’s compliance with derivative adjustment rules and could delay the exchange’s public debut. The forthcoming court decision will determine whether the IPO process proceeds as planned or faces further postponement. 

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