Nine entities, holding 19.62 per cent stake in the National Stock Exchange, have asked the bourse to seek in-principle approval from SEBI for listing within the next 30 days.

The shareholders, in a letter (dated January 13) to SB Mathur, Chairman, NSE, said the management has failed to satisfactorily explain the need to restructure the company and create a separate subsidiary for the non-regulated businesses of the company.

The investors (Aranda Investments Mauritius, Beacon India PE Fund, DVI Fund Mauritius, GTI Capital Epsilon Pvt Ltd, New Quest Asia Investments II, Norwest Venture Partners X Mauritius, SAIF II SE Investments Mauritius, Tiger Global Five Holding, and WCP Holdings III) observed that the proposal to restructure would delay the listing process, which could lead to loss in shareholder value and potential tax liabilities.

In August 2015, a meeting of NSE shareholders ( accounting for 66.65 per cent shareholding) hosted by State Bank of India had unanimously resolved that the NSE management should take steps to initiate the IPO process without delay.

Sohil Chand of Norwest Venture Partners said: “They (the NSE management) set up a stakeholders’ committee, but only called select shareholders — whoever they felt like. The SBI representative stood up and told them we are against restructuring and told them not to proceed. I am amazed that the NSE board has not asked any questions to the NSE top management.” Replying to BusinessLine ’s queries, a statement from NSE said: “SEBI is the market regulator. Anything that an Indian exchange wants to do — like a restructuring plan — needs to have SEBI’s in-principle consent at least.

“It is only logical that the exchange explored regulatory feasibility for the said process. Besides, during the past few months, the NSE did have formal meetings with shareholders where the same was discussed too.”

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