SEBI puts NSDL's proposed Rs 3,000 crore IPO in abeyance: Sources

Stake held by NSE in NSDL is above the permissible limit of 15% in a depository

The Securities and Exchange Board of India (SEBI) has put the proposed initial public offering (IPO) of National Securities Depository Ltd (NSDL) in abeyance, CNBC TV-18 reported on August 3, citing sources.

The IPO, which is targeted to be of around Rs 3,000 crore, has been put under abeyance due to a pending investigation against the National Stock Exchange (NSE), which is the primary shareholder of NSDL, the persons privy to the development said.

As per the norms, SEBI's abeyance period lasts for 90 days. Sources, however, claimed that NSDL will write to the market regulator, requesting it to reduce the abeyance period to 45 days.

Also Read | NSDL files draft papers to float public issue; IDBI Bank, NSE, SBI to dilute holdings

Notably, the stake held by NSE, as well as IDBI Bank, in NSDL is above the permissible limit of 15 percent holding in a depository.

NDSL, which is the largest depository in India going by various parameters including market share in demat value of settlement volume and value of assets held under custody, had filed its draft red herring prospectus on July 9.

The IPO was to be purely offer-for-sale (OFS) of up to 57,260,001 equity shares.

The offer for sale of equity shares comprises up to 22,220,000 Equity Shares by IDBI Bank Limited; up to 18,000,001 Equity Shares by National Stock Exchange of India Limited; up to 5,625,000 Equity Shares by Union Bank of India; up to 4,000,000 Equity Shares by State Bank of India; up to 4,000,000 Equity Shares by HDFC Bank Limited (SS); up to 3,415,000 Equity Shares by Administrator of the Specified Undertaking of the Unit Trust of India (SUUTI).