Supreme Court disposes of SEBI pleas against NSE after ₹1,491 crore settlement in co-location, dark fibre cases

The Supreme Court on Thursday disposed of pleas by the Securities and Exchange Board of India (SEBI) against the National Stock Exchange (NSE) in the co-location and dark fibre cases after the market regulator approved around ₹1,500-crore settlement with the exchange.

The co-location and dark fibre cases relate to allegations that certain stockbrokers received unfair, preferential speed advantages to access market data and trade before other investors.

A bench of Justices JB Pardiwala and K Vinod Chandran took note of the settlement proposed and disposed of the petitions filed by SEBI.

In July, the NSE paid ₹714.74 crore to SEBI after receiving the regulator’s in-principle approval to settle the long-pending co-location and dark fibre cases for ₹1,491.21 crore.

The latest payment, together with the ₹776.47 crore already deposited by the NSE, completes the ₹1,491.21-crore settlement amount agreed under the revised settlement terms.

The NSE had initially filed two settlement applications with SEBI on June 20, 2025, covering the co-location and dark fibre matters for a cumulative amount of ₹1,387.39 crore.

Subsequently, on March 13, 2026, it revised the settlement terms, increasing the cumulative settlement amount to ₹1,491.21 crore.

The settlement comes as the country’s largest stock exchange is preparing for its initial public offering (IPO).

In June, the NSE filed its draft papers with SEBI for an IPO comprising an offer for sale (OFS) of 14.89 crore equity shares by existing shareholders, representing nearly 6 per cent of the exchange’s equity capital.

With no fresh issue component, the proposed IPO is estimated at around ₹30,000 crore, making it one of the largest public issues in the Indian capital markets, sources said.