SEBI Halts NSDL IPO Amid Ongoing Investigation

4 Aug 2023 , 10:22 AM

SEBI puts National Securities Depository Ltd’s (NSDL) proposed IPO on hold, as reported by CNBC TV-18 on August 3. The IPO, expected to be around Rs 3,000 crore, is on hold due to an ongoing investigation against the primary shareholder of NSDL, National Stock Exchange (NSE).

SEBI’s abeyance period for IPOs is typically 90 days, but NSDL may request a reduction to 45 days. The ownership stakes held by NSE and IDBI Bank in NSDL exceed the permissible limit of 15 % holding in a depository, contributing to the suspension.

NSDL, the largest depository in India, filed its draft red herring prospectus on July 9, signaling its intention for the IPO. The IPO was planned as an offer-for-sale (OFS) of up to 57,260,001 equity shares, including stakes from IDBI Bank Limited, National Stock Exchange of India Limited, Union Bank of India, State Bank of India, HDFC Bank Limited (SS), Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI).

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