BSE SHARES SURGE 19% TO HIT A RECORD HIGH; IS A POTENTIAL NSE IPO THE TRIGGER?

Shares of the Bombay Stock Exchange (BSE) Ltd. jumped a little over 19% to hit a record high of 3,459 on Monday (September 16). The stock was also the top gainer in the Nifty 200 index.

Last month, the National Stock Exchange (NSE) had officially sought approval for its initial public offering (IPO) by filing an application for a no objection certificate (NOC) with capital markets regulator SEBI.

The exchange, in the past, had made an application with SEBI for its IPO but the approval wasn’t granted because of the various pending regulatory, and legal matters and investigations.

Earlier in December 2016, NSE had filed draft papers with SEBI for its initial share sale. The IPO was expected to garner ₹10,000 crore. The existing shareholders were looking to offload 22% of shares to the public through the OFS (offer for sale) route.

The listing plans of NSE have been on the backburner amid a regulatory probe against the exchange and some of its top officials. It was alleged that the exchange misused its co-location facility and gave preferential access to certain trading members.

As per a latest development, SEBI has disposed of its proceedings against the NSE, Ravi Narain, Chitra Ramkrishna, Anand Subramanian, and others in a 2019 case pertaining to the co-location facility, citing absence of sufficient evidence.

Apart from NSE, its former MDs and CEOs — Ramkrishna and Narain, the market watchdog has dropped charges against Anand Subramanian, Ravindra Apte, Umesh Jain, Mahesh Soparkar and Deviprasad Singh.

The case relates to the alleged preferential access given to certain broking firms, including OPG Securities, in the form of 'dark fibre' at NSE to connect across the colocation facilities before other members.

The latest order came after the Securities Appellate Tribunal (SAT) directed SEBI in January 2023 to review the matter within four months.

Out of the seven analysts that have a coverage on BSE, four of them have a 'Buy' recommendation, while two have a 'Hold' rating.

Shares of BSE settled 17.82% higher today at ₹3,420. The stock has risen 55% so far in 2024.

2024-09-16T10:46:27Z dg43tfdfdgfd