NSE, BSE-owned clearing house may bury the hatchet on Sebi's informal nudge

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Subscribe to enjoy similar stories. Mumbai: A dispute over unpaid fees between National Stock Exchange Ltd (NSE) and the clearing subsidiary owned by its rival BSE Ltd appears to be nearing resolution, said two people aware of the development. Markets regulator Securities and Exchange Board of India is informally nudging the NSE and Indian Clearing Corporation Ltd (ICCL) to resolve matter at the earliest, the people said on the condition of anonymity as they are not authorized to speak to the media.

The regulator has asked one of its officials to keep a tab on this resolution, they said. Widespread reporting of the issue in the press in the past few weeks seems to have prompted Sebi to informally mediate, encouraging both parties to reach a resolution, said the people. Queries emailed to Sebi and ICCL remained unanswered till press time.

Ketan Mukhija, senior partner at law firm Burgeon Law, said Sebi cannot get involved formally. But its role as a regulator allows Sebi to informally nudge parties towards a settlement through guidance, informal discussions, or policy clarifications, he said. Also read | How Sebi's new consultation framework caused a flutter "To resolve the issue, the NSE and ICCL could engage in independent audits to verify claims, establish a standardized fee framework, or seek (formal) mediation to ensure fair resolution," Mukhija said.

Clearing houses act as an intermediary to settle trades. ICCL is looking to gain a larger share of the business, which is dominated by NSE Clearing Ltd (NCL), a wholly owned subsidiary of the NSE with about 95% market share. The dispute, which came to light in October 2023, stems from non-payment of dues by the NSE to ICCL citingalleged overcharging for clearing