NSE Not applied For Permission Of IPO with SEBI

 



Madras High Court

M/S. Chennai Financial Markets And ... vs The Securities And Exchange Board Of ... on 8 January, 2021

Bench: Sanjib Banerjee, Senthilkumar Ramamoorthy

                                                                             W.P.No.118 of 2021



                                    IN THE HIGH COURT OF JUDICATURE AT MADRAS

                                                DATED: 08.01.2021

                                                     CORAM :

                                   THE HON'BLE MR.SANJIB BANERJEE, CHIEF JUSTICE
                                                          AND
                               THE HON'BLE MR.JUSTICE SENTHILKUMAR RAMAMOORTHY


                                               W.P.No.19413 of 2021

                     M/s. Chennai Financial Markets and Accountability
                     rep. by its President Manoj K Sheth
                     Having its registered office at
                     GA Florentina, No.43, 1st Main Road
                     Gandhi Nagar, Adyar
                     Chennai 600 020.                              ...      Petitioner

                                                    Vs.

                     1. The Securities and Exchange Board of India
                        Southern Regional Office (SRO)
                        7th Floor, 756-L, Anna Salai
                        Chennai 600 002, Tamil Nadu
                        Having their Corporate Office at:
                        Plot No.C 4-A, G Block, Near Bank of India
                        Bandra Kurla Complex, Bandra East
                        Mumbai, Maharashtra 400 051.

                     2. National Stock Exchange of India Ltd.
                        Exchange Plaza, Plot No.C/1, G Block
                        Bandra-Kurla Complex
                        Bandra (E), Mumbai 400 051.                   ...   Respondents

                     [R2 impleaded vide order dt. 08.01.2021
                     made in WMP No.711 of 2021]

                     __________
                     Page 1 of 5


https://www.mhc.tn.gov.in/judis/
                                                                                W.P.No.118 of 2021




                     Prayer: Petition under Article 226 of the Constitution of India praying

                     for a writ of Mandamus directing the first respondent to act on the

                     representation of the petitioner dated 21.10.2020 and exercise its

                     powers under Section 11A of SEBI Act, 1992 and forbear the IPO of

                     the National Stock Exchange.



                                   For Petitioner          : Mr.Nithyaesh Natraj

                                   For Respondents         : Mr.Shivakumar
                                                             for respondent-1

                                                              Mr.P.S.Raman, S.C.
                                                              for Mr.Giridhar Padmanabhan
                                                              for respondent-2


                                                     ORDER

(Made by the Hon'ble Chief Justice) The matter pertains to the proposed IPO of the National Stock Exchange. The writ petitioner challenges the rationale for such IPO and questions the propriety thereof.

2. An application has been made for impleading National Stock Exchange. Such Stock Exchange is represented as is the Security __________ https://www.mhc.tn.gov.in/judis/ Exchange Board of India.

3. On behalf of SEBI, it is submitted that no IPO of the kind complained of by the writ petitioner can be set in motion without the prior permission of the SEBI. NSE, in turn, submits that it has not obtained the clearance from SEBI as yet and there can be no apprehension that NSE will not comply with the requisite formalities before embarking on such an exercise. The substance of the submission on behalf of both SEBI and NSE appears to be that the writ petition may be pre-mature. Since it is admitted by the two leading dramatis personae that NSE cannot float an IPO without prior permission from the SEBI and since it is the undisputed position that such permission has not been sought or granted, there is no need to look into whatever the writ petitioner alleges. The petition appears to be pre-mature and is not entertained as such. However, this order will not preclude the petitioner from challenging any future decision of NSE to float an IPO. The liberty given to challenge the IPO will be without prejudice to the rights and contentions of NSE.

__________ https://www.mhc.tn.gov.in/judis/ W.P.No.19413 of 2020 and WMP No.24000 of 2020 are disposed of without any order as to costs.

                                                                (S.B., CJ.)      (S.K.R., J.)
                                                                          08.01.2021

                     Index : Yes/No

                     kpl



                     To

1. The Securities and Exchange Board of India Southern Regional Office (SRO) 7th Floor, 756-L, Anna Salai Chennai 600 002, Tamil Nadu Having their Corporate Office at:

Plot No.C 4-A, G Block, Near Bank of India Bandra Kurla Complex, Bandra East Mumbai, Maharashtra 400 051.

2. National Stock Exchange of India Ltd. Exchange Plaza, Plot No.C/1, G Block Bandra-Kurla Complex Bandra (E), Mumbai 400 051.

__________ https://www.mhc.tn.gov.in/judis/ THE HON'BLE CHIEF JUSTICE AND SENTHILKUMAR RAMAMOORTHY, J.

(kpl) 08.01.2021 __________ https://www.mhc.tn.gov.in/judis/

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