Mumbai, June 19 (IANS) The National Stock Exchange (NSE) has disclosed in its draft red herring prospectus (DRHP) that a petition pending before the Bombay High Court seeks, among other reliefs, a stay on its proposed initial public offering (IPO) process and directions for greater disclosures regarding its shareholding structure.

According to the DRHP filed with the Securities and Exchange Board of India (SEBI), the petitioner has sought a writ directing SEBI to decide a pending representation and has also sought disclosures from NSE relating to its promoter group, shareholders and ultimate beneficial owners, along with know-your-customer (KYC) documents.

“The Petitioner sought, among others, a writ of mandamus directing SEBI to decide the pending Representation, a direction against our Company seeking disclosure of its promoter group and shareholders/ultimate beneficiaries with KYC documents and a stay on our Company’s initial public offering process until final disposal of the Petition. The matter is currently pending,” the exchange noted.

However, the exchange stated that it believes the petition is without merit and is taking appropriate legal steps in the matter.

While reports claim that the petitioner has raised concerns regarding the beneficial ownership of certain investors in NSE and sought a regulatory examination of foreign shareholding in the exchange. They further said the matter was first heard by the Bombay High Court on June 17 and is scheduled to come up for hearing again on June 24.

Apart from the pending litigation, NSE highlighted several risk factors in its IPO papers.

It warned that failure to adequately protect its intellectual property rights, including trademarks, proprietary technology and trade secrets, could adversely affect its business, reputation and competitive position.

The bourse noted that some of its trademarks are awaiting registration and could face risks of infringement or misappropriation by third parties.

It further highlighted that certain technology systems developed in-house are not protected by registered patents, making them potentially vulnerable to replication by competitors.

It had approached the Bombay High Court against unidentified persons and intermediaries for allegedly operating fake social media accounts and disseminating misleading content using the NSE trademark, the exchange said.

In addition, the court granted interim relief in April 2026, restraining the defendants from using the NSE brand or deceptively similar marks.

Moreover, the exchange said misuse of its intellectual property could facilitate phishing attempts, fake trading schemes and other financial frauds, potentially resulting in investor complaints, regulatory scrutiny and damage to its brand value.

–IANS

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