The Securities and Exchange Board of India (SEBI) has granted in-principle approval to the National Stock Exchange (NSE) to settle the protracted unfair market access case, a move confirmed by SEBI Chairman Tuhin Kanta Pandey on Thursday, January 15, 2026. This development is a crucial step towards resolving the long-standing regulatory investigations into the co-location and dark fibre disputes that have delayed the NSE's Initial Public Offering (IPO) since 2016. The unfair market access case, which involved allegations of preferential access to NSE's trading systems, has been a significant impediment to the exchange's listing plans. The NSE had previously offered to settle the matter, including a ₹1,387 crore payment to SEBI for the overall case, and settled a ₹643 crore penalty for the Trading Access Point (TAP) architecture and network connectivity case in October 2024. With the in-principle approval, SEBI is now in the advanced stages of issuing a No Objection Certificate (NOC) for the public issue, with expectations for it to be granted by the end of January 2026. Furthermore, the Indian government has approved a 2.5% stake dilution for the NSE's IPO, with a formal notification anticipated soon. This aligns with SEBI's revised regulations from 2024, which reduced the minimum public float requirement for large companies valued above ₹5 lakh crore post-listing from 5% to 2.5%. Following these regulatory clearances, the NSE plans to file its draft prospectus (DRHP) by the end of March 2026, signaling the imminent launch of what could be one of India's largest initial public offerings. The news has already spurred an increase in the unlisted share prices of NSE, reflecting renewed investor interest and a more favorable regulatory environment.