• ₹100 Crore Clash: Who Pays Whom?
• Market Watch: Settlement or Standoff?
• SEBI Intervenes in NSE-BSE Clearing Dispute: A Step Towards Resolution
Unmesh Gujarathi
Sprouts News Excludive
In a significant development, the Securities and Exchange Board of India (SEBI) has informally stepped in to mediate a long-standing financial dispute between the National Stock Exchange (NSE) and the Indian Clearing Corporation Limited (ICCL), a subsidiary of the Bombay Stock Exchange (BSE). According to sources, SEBI’s intervention aims to bring a fair resolution to the matter and ensure the smooth functioning of India’s stock market infrastructure.
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• Background of the Dispute
The dispute between NSE and ICCL revolves around clearing and settlement charges under SEBI’s interoperability framework, which was introduced in June 2019. This framework allows trading members to clear trades through a clearing corporation of their choice, promoting competition and efficiency. However, issues regarding financial settlements between the two exchanges have remained unresolved.
ICCL has claimed nearly ₹100 crore in pending dues from NSE, arguing that these charges are a result of clearing trades through its infrastructure. On the other hand, NSE has challenged these claims, stating that it has been overcharged and is, in fact, seeking a refund of approximately ₹51 crore from ICCL.
• SEBI’s Role in Facilitating a Resolution
According to sources who spoke to Sprouts News, SEBI has issued an informal directive to both NSE and ICCL, urging them to resolve the matter amicably. This intervention is seen as a proactive step by the regulator to prevent the dispute from escalating and affecting market operations.
In response to SEBI’s guidance, NSE has requested ICCL to issue a revised credit note reflecting the disputed amount. This move signals a possible de-escalation in tensions between the two parties.
A senior market expert told Sprouts News, “SEBI’s involvement underscores the importance of regulatory oversight in ensuring fairness and transparency in market settlements. A prolonged dispute could shake investor confidence, and SEBI’s intervention is a welcome step towards maintaining stability.”
• Recent Developments and Market Impact
This development follows another settlement between BSE and NSE Clearing, the clearing arm of NSE, where BSE cleared dues amounting to ₹312.37 crore after regulatory intervention. Market analysts believe that SEBI’s involvement in these disputes highlights its commitment to ensuring the smooth functioning of financial markets.
Given the significance of the interoperability framework in India’s stock market structure, a resolution between NSE and ICCL will be crucial for maintaining investor trust. Industry experts suggest that a mutually agreed settlement could set a precedent for how similar disputes are handled in the future.
• What’s Next?
While there is no formal agreement yet, both NSE and ICCL are expected to continue discussions under SEBI’s informal guidance. Market participants will be closely watching how the issue unfolds, as it could influence the future dynamics of clearing and settlement charges across Indian exchanges.