SEBI Shuts NSE Co-Location, Dark Fibre Cases With Rs 1,491-Crore Settlement
Jul 30, 2026
NSE received SEBI's in-principle approval for a Rs 1,491 crore settlement in the co-location case, clearing a key regulatory hurdle before its planned IPO.
The Securities and Exchange Board of India (SEBI) has given its in-principle approval to settle the National Stock Exchange's (NSE) long-running co-location and dark fibre cases for Rs 1,491.21 crore, bringing one of India's biggest market regulation matters closer to closure.
In an exchange filing on Thursday, NSE said SEBI accepted its revised settlement proposal through an email dated July 30, 2026, and directed the exchange to pay the remaining Rs 714.74 crore to complete the settlement.
The amount is in addition to the Rs 776.47 crore already deposited by NSE, which will be adjusted against the total settlement amount. The settlement relates to the co-location and dark fibre cases that have been under regulatory investigation for several years.
NSE first submitted its settlement application in June 2025 and later revised the proposal in March 2026, increasing the settlement amount to Rs 1,491.21 crore. The exchange also said it has already made provisions for the full amount in its financial statements, including Rs 1,391.21 crore recognised recently and an earlier provision of Rs 100 crore.
The settlement is expected to remove one of the biggest legal and regulatory overhangs for the country's largest stock exchange, which has been seeking to resolve the matter before moving ahead with its long-awaited initial public offering (IPO).
The controversy dates back to 2009, when NSE introduced its co-location facility, allowing brokers to place their trading servers inside the exchange's data centre for a fee.
The arrangement reduced the time taken to receive market data, giving co-located brokers a speed advantage in executing trades. SEBI later investigated allegations that some brokers received preferential or faster access to trading data through the system, raising concerns about fair market access.
The regulator also examined the exchange's use of dark fibre connectivity, which allegedly provided lower-latency connections to certain brokers.
Over the years, the cases led to multiple regulatory proceedings, investigations and penalties, making them among the most closely watched enforcement actions in India's capital markets.
While SEBI has now given its in-principle approval to the settlement, the process will be completed after NSE pays the remaining Rs 714.74 crore and fulfils the conditions laid down by the regulator.
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