Supreme Court’s order on 15 September 2026 lifted the regulatory cloud that has hovered over NSE’s co‑location and dark‑fiber services for a decade, allowing the exchange to finally close a long‑running dispute with SEBI.
The ruling obliges SEBI to accept NSE’s proposed compliance framework, a move that signals the end of a decade‑old regulatory standoff that has cost the market in terms of uncertainty and delayed capital deployment.
NSE’s NIFTY index closed at 19,856.25 points, up 0.1% on the day, reflecting a modest market rally as investors absorb the news that a key risk factor has been removed.
Analysts note that this resolution could boost NSE’s attractiveness to foreign institutional investors, who have previously cited the regulatory lag as a deterrent. The exchange’s chief market officer, Sandeep Bhat, said the settlement would “reduce compliance costs and improve market efficiency.”
Looking ahead, NSE has set a target to fully integrate the new co‑location framework by Q3 2027, with the next earnings report scheduled for December. The market will watch closely for any changes in SEBI’s regulatory stance on technology‑driven services across exchanges.