Mumbai, June 25, 2025 –
The National Stock Exchange (NSE) has reportedly proposed a settlement of ₹1,388 crore to resolve long-standing regulatory investigations related to its controversial co-location and dark fibre cases.

According to media reports, the exchange has submitted this offer to the Securities and Exchange Board of India (SEBI) under a settlement mechanism, in a move aimed at putting an end to the legal uncertainty that has hovered over India’s largest stock exchange for years.

The co-location case dates back to 2010–2014, when certain high-frequency trading firms were allegedly given unfair early access to NSE's servers, allowing them to gain a trading advantage. The dark fibre case involves allegations of select brokers receiving superior network connectivity via unapproved fibre-optic routes.

The combined offer includes penalties, disgorgement of gains, and interest—bringing the proposed amount to nearly ₹1,400 crore. If SEBI accepts the proposal, it could help NSE move forward with its long-pending IPO plans, which were previously stalled due to these unresolved issues.

📌 Background

Co-location case: Accused of allowing some brokers faster data access via server proximity.

Dark fibre case: Brokers allegedly benefited from unauthorized high-speed connections.

NSE's top former executives, including ex-CEO Chitra Ramkrishna, have also faced regulatory and legal scrutiny.

📈 Market Impact

Though NSE is not yet publicly listed, reports suggest that the unlisted share price of NSE has remained strong amid expectations of regulatory clarity and IPO revival in the coming year.