Can NSE Cherry-pick Its Punishment for the Algo Scam? Does SEBI Have the Power To Permit It?

The National Stock Exchange (NSE) released its annual report over the weekend, making news for the announcement that it was planning to apply again for an initial public offering (IPO). The Indian capital market is in a rare bull market where food delivery major Zomato is seeing its share price surge after a hugely successful IPO without any sign of profits. Policybazar, another loss-making entity, is all set to pick up funds and the public is lining up to provide funds, not only to it but almost every internet company that is quick enough to ride this wave!

It is natural that NSE’s foreign institutional investors are chafing at the bit and want the largest and most profitable (70% operating margin) derivatives exchange in the world, in terms of contracts, to list and give some of them a thumping exit or high valuation.