SEBI passes settlement order in NSE TAP case

Market regulator Securities and Exchange Board of India (SEBI) has approved a settlement order in the NSE TAP (Trading Access Point) case, Zee Business reported. The settlement order is for Rs 643 crore, the biggest settlement amount in SEBI's history.

With this, NSE moves a step forward towards easing its IPO.

In August, the National Stock Exchange (NSE) tried again to settle a regulatory investigation into the misuse of its TAP software with revised terms of settlement.

Backgrounder

The NSE had submitted settlement requests with SEBI in 2022 and 2023. The market watchdog returned the 2022 application citing an ongoing inquiry.

The NSE got a show-cause notice from the regulator on February 28, 2023. On April 28, the exchange responded to the notification by filing a settlement application in which it submitted its reasons of consent without admitting blame or guilt and expressed its readiness to pay a reasonable sum by the settlement regulations. On July 10, the NSE filed a thorough response to the notice.

After that, SEBI held several internal committee meetings with NSE. On March 5, 2024, NSE filed a revised settlement term (RST) with SEBI.

On May 24, the market regulator said that its High Powered Advisory Committee on Settlement Orders and Compounding of Offences had refused to accept the pooled settlement offer, directing the NSE to file separate applications with RST. On June 14, after receiving board permission, the NSE filed an RST with SEBI seeking a settlement.