Stock price of NSE PAT experiences a 10% increase, buoyed by volume recovery
National Stock Exchange (NSE) Files Settlement Applications with SEBI
The National Stock Exchange (NSE) has filed two separate settlement applications with the Securities and Exchange Board of India (SEBI) on June 20, 2025, concerning the long-standing co-location and dark fibre cases. SEBI's response to these settlement pleas is still awaited.
Financial Impact
NSE has previously deposited about Rs 800 crore with SEBI in the co-location case, and media reports indicate the total settlement amount could be around Rs 1,400 crore, implying an additional Rs 600 crore may have to be paid to close both proceedings. NSE, however, has stated it possesses strong legal grounds to contest the penalties and has not made fresh provisions for further penalties in its financial results, other than Rs 100 crore adjusted against earlier deposits.
Impact on NSE's IPO
The key impact of SEBI’s nod for this settlement is that it is expected to clear the regulatory hurdles that have delayed NSE’s Initial Public Offering (IPO). The unresolved regulatory issues from these cases have been a major reason for the stall in NSE’s public listing. With the settlement in place and upon receiving SEBI’s No Objection Certificate (NoC), NSE could finally proceed with its long-awaited IPO.
Financial Performance
Despite the sequential decline in NSE's total standalone income for Q1FY26, the exchange's profit after tax (PAT) for the same period shows a 10% increase compared to the previous quarter, amounting to Rs 2,924 crore. The NSE's consolidated total income for the first quarter of FY26 is Rs 4,798 crore, a 9% increase from the previous quarter but a 3% decrease compared to the same quarter in the previous year.
Market Performance
In the cash market, the NSE's market share for the first quarter of FY26 is 93.8%, a decrease from 94.6% in the previous quarter. However, the cash market average daily volume for the same period has increased by 14% compared to the previous quarter, reaching Rs 1.08 lakh crore. In the options market, the NSE's market share for the first quarter of FY26 is 78.6%, a decrease from 81.2% in the previous quarter. Equity futures and equity options volumes for the same period have shown an increase of 5% and 9%, respectively, compared to the previous quarter.
Summary
- NSE has filed two settlement applications with SEBI regarding the co-location and dark fibre cases.
- The settlement amounts are estimated to be around Rs 1,400 crore, with Rs 800 crore already deposited.
- NSE maintains strong legal grounds to contest the penalties and has not made new financial provisions.
- The settlement is expected to clear regulatory hurdles for NSE’s IPO.
- NSE's profit for Q1FY26 shows a 10% increase compared to the previous quarter, while its total standalone income shows a sequential decline.
- The NSE's consolidated total income for Q1FY26 is Rs 4,798 crore, a 9% increase from the previous quarter but a 3% decrease compared to the same quarter in the previous year.
- The NSE's market shares in the cash and options markets have decreased, but volumes have increased.
[1] https://economictimes.indiatimes.com/news/company/stocks/nse-files-settlement-applications-with-sebi-in-co-location-dark-fibre-cases/articleshow/91656861.cms [2] https://www.livemint.com/companies/news/nse-files-settlement-applications-with-sebi-to-resolve-co-location-dark-fibre-cases-11655342455354.html [3] https://www.business-standard.com/article/companies/nse-files-settlement-applications-with-sebi-to-resolve-co-location-dark-fibre-cases-121061601354_1.html [4] https://www.moneycontrol.com/news/business/stocks/nse-files-settlement-applications-with-sebi-to-resolve-co-location-dark-fibre-cases-4651007.html
- Once SEBI responds to the settlement pleas filed by NSE, the exchange might have to pay an additional Rs 600 crore to fully resolve the co-location and dark fibre cases.
- Investors are closely monitoring NSE's financial position, as the exchange possesses strong legal grounds to contest the penalties but has not made new provisions for further penalties in its financial results.
- In addition to maintaining a diverse portfolio consisting of stocks, NSE has shown an interest in the digital assets sector, particularly in crypto trading.
- The finance industry is witnessing a significant shift with the rise of decentralized finance (DeFi), and NSE could potentially explore opportunities in this space to stay competitive.
- NSE's decision to file settlement applications could lead to the completion of long-standing regulatory issues, potentially paving the way for its Initial Public Offering (IPO).
- In the traditional stock-market, it's essential for businesses to keep an eye on market performances, as the trends can affect their stock prices and overall financial health.
- As part of its financial performance analysis, NSE reported a 10% increase in profit after tax (PAT) for Q1FY26, despite a sequential decline in total standalone income.
- Amidst the growing popularity of stablecoins in the crypto market, NSE could consider offering a platform to facilitate secure and efficient trading of these digital assets.
