NSE IPO Plans Gain Pace: Process Put On Fast-Track, Officials Working On Priority

The long-awaited public listing of the National Stock Exchange may finally be gaining momentum, with the markets regulator putting the IPO process on a fast track, according to people familiar with the matter.

Initial regulatory approvals are not far off as officials involved have been asked to prioritise IPO-related diligence, the people told NDTV Profit. This includes a detailed review of all open observations flagged in earlier rounds of review.

The process also involves an examination of various complaints, references, and pending regulatory queries related to the exchange, all of which are currently being looked into by the authorities, the people added.

Timeline

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 had told NDTV Profit.

The NOC is to follow SEBI's acceptance of NSE's settlement amount offer, they added. 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 people further mentioned.

While an expedited approach is likely to be followed, the approvals may depend on several variables, they said. 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 matter 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 markets regulator, as it is a vast process and has to be started from scratch.

The exchange is likely to file its draft IPO papers by December, subject to the nod it receives from the markets regulator. The bourse is likely planning to launch its IPO either at the end of FY26 or at the very beginning of FY27, but it depends on the market conditions at the time, sources said.

Background 

The exchange had filed its IPO prospectus back in 2016.

In a letter dated Nov. 21, 2016, SEBI approved the listing of NSE's equity shares on a recognised stock exchange, contingent upon compliance with applicable regulations and 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.