Mumbai, June 19, 2026
The National Stock Exchange (NSE) has disclosed in its draft red herring prospectus (DRHP) for its proposed initial public offering (IPO) that it filed a police complaint over the alleged wrongful retention and sale of shares that were mistakenly credited to an individual’s demat account.
The complaint was filed against an individual identified as Kashmiri Lal Rana under provisions of the Bharatiya Nyaya Sanhita (BNS) relating to alleged criminal breach of trust and cheating.
NSE alleged that 5,000 equity shares of the exchange were erroneously credited to Rana’s demat account and were knowingly retained despite not belonging to him.
The exchange further alleged that 3,685 of those shares were subsequently sold for approximately Rs 1.33 crore (Rs 13.27 million).
In addition, NSE and Nuvama Wealth Finance Ltd filed a civil suit before the Delhi High Court in May 2025 seeking recovery of shares and sale proceeds linked to the same incident.
According to the DRHP, the two entities alleged that 5,000 NSE shares were erroneously credited to Rana’s demat account in December 2023 without any purchase request or consideration being paid.
By the time the error was detected, 3,685 shares had allegedly been sold, according to the DRHP.
The plaintiffs have sought recovery of about Rs 1.44 crore representing the sale proceeds of the shares, along with the return of the remaining 1,315 shares and 5,260 bonus shares accrued on them.
Moreover, the Delhi High Court — through an interim order passed in May 2025 –restrained the transfer or sale of the remaining shares and bonus shares during the pendency of the case.
“The matter is currently pending,” NSE noted.
According to the draft papers filed with the Securities and Exchange Board of India (SEBI), NSE, through its authorised representative, lodged a First Information Report (FIR) at the Bandra-Kurla Complex Police Station here in July 2025.(Agency)
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