KD NEWS SERVICE
New Delhi, July 30: The National Stock Exchange of India (NSE) has received in-principle acceptance from the Securities and Exchange Board of India (SEBI) for the Revised Settlement Terms (RST) proposed by the exchange, paving the way for settlement of the matter involving a total settlement amount of ₹1,491.211 crore.
In a regulatory disclosure issued on Thursday under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, NSE said it received a communication from SEBI dated July 30, 2026, conveying the regulator’s in-principle acceptance of the revised terms.
According to the disclosure, the acceptance is subject to Regulations 28 and 31 of the SEBI (Settlement Proceedings) Regulations, 2018.
The development assumes significance for NSE as the exchange has already made a substantial provision for the settlement amount in its financial statements for the financial year ended March 31, 2026. As a result, the latest development is not expected to create a fresh financial burden equivalent to the full settlement amount on the company’s accounts.
₹776.47 crore deposit to be adjusted
As per the details provided by NSE, SEBI has in principle agreed to accept the settlement terms and has made a demand of ₹714.74 crore, in addition to the ₹776.47 crore deposit already made by NSE with SEBI.
The existing deposit will be adjusted towards the overall settlement amount of ₹1,491.211 crore.
The figures essentially mean that the settlement obligation is being met through the combination of the amount already deposited with SEBI and the additional payment of ₹714.74 crore. NSE has clarified that the financial impact of the total settlement amount has already been provided for in the financial year ended March 31, 2026.
Consequently, the immediate financial impact arising from the latest development is primarily the cash outflow of ₹714.74 crore, rather than a fresh accounting charge of ₹1,491.211 crore.
No material impact on day-to-day operations
Importantly, NSE said there would be no other material adverse impact on the day-to-day operations of the company as a result of the settlement.
This is a key aspect of the disclosure, as the exchange has specifically indicated that its normal business operations are not expected to be disrupted by the settlement process.
The exchange has also stated that the details of the alleged violations or contraventions are “Not Applicable” in the regulatory disclosure pertaining to the action communicated by SEBI.
The disclosure was signed by Prajakta Powle, Company Secretary and Compliance Officer, National Stock Exchange of India Limited.
Settlement provision already reflected in FY26
From a financial perspective, the most significant takeaway from the announcement is that NSE had already recognised the entire ₹1,491.211-crore settlement amount in its financials for FY26.
This substantially reduces uncertainty surrounding the accounting impact of the settlement. While NSE will now face an additional cash outflow of ₹714.74 crore pursuant to SEBI’s demand, the company has made it clear that the corresponding overall settlement liability has already been provided for.
The distinction between the accounting impact and the cash flow impact is therefore important. The ₹1,491.211 crore represents the total settlement amount, while ₹714.74 crore represents the additional cash payment required after taking into account the ₹776.47 crore already deposited with SEBI.
SEBI acceptance marks key step
The in-principle acceptance by SEBI represents an important procedural step in the settlement process. The revised settlement terms proposed by NSE have now received the regulator’s preliminary acceptance, subject to the applicable provisions of the SEBI (Settlement Proceedings) Regulations, 2018.
The settlement mechanism is intended to bring greater clarity and closure to the matter while ensuring compliance with the regulatory framework.
For NSE, the development also removes a significant element of uncertainty around the final settlement obligation, particularly because the entire amount has already been accounted for in the financial year ended March 31, 2026.
NSE maintains operational stability
The exchange’s disclosure also offers reassurance regarding business continuity. NSE has expressly stated that there is no other material adverse impact on its day-to-day operations.
This suggests that the settlement, while financially significant in absolute terms, is not expected to affect the exchange’s regular functioning, market operations or routine activities.
The development comes against the backdrop of NSE’s continuing role as one of India’s most important market infrastructure institutions, with its operations forming a critical part of the country’s capital-market ecosystem.
With the settlement amount already provided for in FY26 and only ₹714.74 crore remaining as the additional cash outflow, the latest regulatory development provides greater visibility on the financial implications for the exchange.
In essence, SEBI’s in-principle acceptance brings NSE closer to closure of the settlement process, while the exchange’s disclosure indicates that the financial impact has already been substantially addressed in its accounts and that no material disruption to its day-to-day operations is expected.
