NSE IPO: SEBI NOC Likely In Two Months; DRHP Expected By December, Say Sources

The National Stock Exchange's initial public offering is likely to receive a no objection certificate in the next two months from the Securities and Exchange Board of India, people familiar with the matter told NDTV Profit.

The NOC is to follow SEBI's acceptance of NSE's settlement amount offer, they added. As NDTV Profit reported previously, NSE had offered around Rs 1,400 crore to settle pending cases. Other issues that have been previously highlighted are to be dealt with post settlement, the sources further mentioned.

While the sources have mentioned that an expedited approach is likely to be followed, the approvals may depend on several variables. One of the people cited above said that the regulator is keen on settling the issue but it will go through consultations before an internal committee.

Once the settlement issue is resolved, all other obstacles highlighted by SEBI in a February letter to NSE will likely be dealt with, a person privy to the issue told NDTV Profit.

One of the sources further mentioned that the exercise to file a draft red herring prospectus will only take place when a positive response is received from the market regulator, as it is a vast process and has to be started from the scratch.

The exchange is likely to file its draft IPO papers by December, subject to the nod it receives from the market regulator. The bourse is likely planning to launch its IPO in FY26-27, but it depends on the market conditions at the time, sources said.

The exchange had filed its IPO prospectus back in 2016.

In a letter dated Nov. 21, 2016, the markets regulator approved the listing of equity shares on a recognised stock exchange, contingent upon compliance with applicable regulations and SEBI circulars. The offer received approval from NSE's board of directors and shareholders through resolutions passed on Oct. 4, 2016, and Nov. 10, 2016, respectively.

During that period, NSE, its directors, and its group companies were not barred from accessing or operating in capital markets by SEBI or any other authorities.

However, in a 2019 order, SEBI barred NSE from accessing the securities market for six months due to complaints related to its co-location facilities. Although the Securities Appellate Tribunal modified financial penalties in January 2023, it upheld the market access restriction.

Subsequently, NSE's 2022-2023 annual report emphasised that the six-month prohibition period had ended and that it awaited SEBI's further approval for listing. Reports in December 2023 suggested SEBI had imposed additional conditions for NSE's IPO approval, including maintaining a glitch-free year, enhancing technological infrastructure, improving corporate governance, and resolving pending legal matters.

Notably, the NSE co-location case was partially settled in October 2024 for a whopping amount of Rs 643 crore.