2 hrs ago
Supreme Court Approves NSE-SEBI Co-Location Settlement
The Supreme Court approved an agreement between NSE and SEBI.
The agreement ends legal disputes about how some brokers accessed NSE’s trading systems.
Some brokers were alleged to have received faster or preferential access to market data and connections.
The disputes also involved dark-fibre and leased-line connectivity.
NSE agreed to pay a total of ₹1,491.21 crore under SEBI’s settlement process.
Part of the money had already been deposited, and the remaining amount was later paid.
SEBI had earlier ordered NSE to disgorge about ₹625 crore plus interest, but that order was overturned by a tribunal.
SEBI then challenged that decision in the Supreme Court.
The court’s approval closes the pending proceedings, although the reports give differing dates for related court actions.
The Supreme Court approved a settlement ending pending SEBI-NSE co-location and dark-fibre proceedings.
NSE agreed to pay ₹1,491.21 crore under SEBI’s settlement mechanism.
The payment includes ₹1,223.56 crore for co-location and ₹267.65 crore for dark fibre.
The cases involved allegations of preferential access to trading infrastructure and market-data feeds.
The proceedings involved differing legal outcomes, with SEBI’s 2019 disgorgement order later set aside by the Securities Appellate Tribunal.
- Who
- The Supreme Court, SEBI and NSE; the matter was heard by Justices JB Pardiwala and K Vinod Chandran.
- What
- The court approved a ₹1,491.21-crore settlement covering NSE’s co-location and dark-fibre matters.
- Where
- The proceedings were before the Supreme Court of India and concerned NSE’s trading infrastructure.
- When
- The approval was reported on Friday; one report was published on September 18, 2026, while another refers to proceedings disposed of on September 3, 2026.
- Why
- The settlement addressed allegations that certain brokers received preferential access to NSE’s co-location systems and market-data feeds.
Regulatory Allegations
NSE’s Legal Position
Access to trading systems
Regulatory Allegations
SEBI alleged that certain brokers received preferential access to NSE’s Tick-by-Tick data feeds and co-location infrastructure, creating an unfair advantage.
NSE’s Legal Position
NSE challenged SEBI’s disgorgement order, and the Securities Appellate Tribunal later set that order aside.
Resolution of the dispute
Regulatory Allegations
SEBI pursued enforcement proceedings and appealed the tribunal’s decision to the Supreme Court.
NSE’s Legal Position
NSE settled the co-location and dark-fibre matters by paying ₹1,491.21 crore, bringing the pending proceedings to an end.
Key facts
- Total settlement
- ₹1,491.21 crore
- Co-location component
- ₹1,223.56 crore
- Dark-fibre component
- ₹267.65 crore
- Amount initially deposited
- ₹776.47 crore
- Additional payment
- ₹714.74 crore
- Earlier SEBI order
- Disgorgement of about ₹625 crore plus 12% annual interest from April 1, 2014
- Related IPO
- The report described NSE’s nearly ₹22,562-crore IPO as open for subscription, closing on September 21, 2026
Sources
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