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The development marks a major step towards resolving the colocation and dark fibre cases.

The board of the bourse cleared an additional payment of Rs 714.7 crore for this purpose, having already deposited a sum of Rs 776.5 crore with the market regulator.

The amount of money already deposited with SEBI will be adjusted against the total settlement amount.

The total settlement amount in both the cases amounts to Rs 1,491.2 crore.

Out of the total amount, a sum of Rs 1,223.6 crore is set aside for the co-location case, wheeras the remainder Rs 267.65 crore is due for the dark fibre matter.

The regulator has agreed to settle the exchange's long-pending co-location and dark fibre cases, paving the way for the closure of two of the biggest regulatory proceedings involving the country's largest stock exchange.

The co-location and dark fibre matters have remained under regulatory scrutiny for several years and have been among the biggest legal overhangs for the exchange. What is the NSE co-location case?

The matters relates to allegations that certain brokers received preferential access to the exchange's trading infrastructure, enabling them to access market data ahead of other participants.

What is the dark fibre case?

This matter pertains to allegations of preferential connectivity through NSE's fibre network.

The development comes weeks after NSE disclosed, in its draft red herring prospectus (DRHP), that it had submitted revised settlement applications to SEBI, offering to pay Rs 1,491.21 crore to resolve the two matters.

With SEBI agreeing to the settlement, the regulator and NSE are expected to jointly approach the Supreme Court to seek permission to withdraw the pending appeals related to the two matters, people aware of the development said. Once the court permits the withdrawal and the settlement process is completed, the long-running litigation is expected to come to an end.