Mumbai, June 19: The National Stock Exchange (NSE) has revealed that a petition is pending in the Bombay High Court. This petition seeks to halt the process of its proposed Initial Public Offering (IPO) and demands more transparency regarding its shareholding structure.
According to the Draft Red Herring Prospectus (DRHP) filed with the Securities and Exchange Board of India (SEBI), the petitioner has requested SEBI to direct a decision on the pending representation. The petitioner also seeks disclosure of information related to the NSE’s promoter group, shareholders, and ultimate beneficial owners (UBOs), along with KYC documents.
The DRHP states, “The petitioner has requested SEBI to make a decision on the pending representation, to disclose information regarding our company’s promoter group and shareholders/UBOs, and to halt our IPO process until the final resolution of the petition. This matter is currently pending.”
However, the exchange asserts that it believes the petition lacks a factual basis and is taking necessary legal steps in response.
Reports indicate that the petitioner has raised concerns about the beneficial ownership of certain investors in the NSE and has called for a regulatory investigation into foreign ownership within the exchange.
The first hearing of this case took place on June 17 in the Bombay High Court, with the next hearing scheduled for June 24.
In addition to the ongoing litigation, the NSE has highlighted several other risk factors in its IPO documents. The exchange warned that failure to adequately protect its intellectual property rights, such as trademarks, proprietary technology, and trade secrets, could negatively impact its business, reputation, and competitive position.
The NSE noted that some of its trademarks are still in the registration process and are at risk of infringement or misuse by third parties. Furthermore, the exchange mentioned that some of its internally developed technical systems are not protected under registered patents, raising concerns about potential imitation by competitors.
The NSE has also approached the Bombay High Court against unknown individuals and intermediaries operating fake social media accounts and disseminating misleading content using its trademarks.
According to the exchange, in April 2026, the High Court granted interim relief by prohibiting the defendants from using the NSE brand or similar names and symbols.
Additionally, the NSE warned that misuse of its intellectual property could facilitate phishing attacks, fraudulent trading schemes, and other financial frauds. This could lead to an increase in investor complaints, regulatory scrutiny, and damage to the company’s brand image.
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