The long-awaited initial public offering of the National Stock Exchange of India Ltd. cleared a major hurdle on Friday after receiving a no-objection certificate from the Securities and Exchange Board of India. The process began back in 2016 when India's largest bourse applied for an IPO.
In December 2016, the NSE filed its draft red-herring prospectus (DRHP) with the SEBI, aiming to raise approximately Rs 10,000 crore through an offer-for-sale by existing shareholders. The IPO plans were soon derailed by revelations of the co-location scandal, where certain brokers allegedly received unfair access to NSE's trading systems, giving them a speed advantage. The allegations led to a full-blown regulatory investigation.
Between 2017 and 2022, three SEBI chairpersons oversaw the case without clearing the IPO path, even as institutional investors began to exit gradually, frustrated by the stalemate.
In April 2019, the SEBI passed its orders against the entities involved with the co-location scam and directed NSE to pay Rs 625 crore along with interest at the rate of 12% per annum from April 2014. It also barred the NSE from raising money on the securities market directly or indirectly for six months.
The SEBI flagged further deficiencies in NSE's IPO application, giving the exchange 24 months to resolve them. Although the Securities Appellate Tribunal modified financial penalties in January 2023, it upheld the market access restriction.
In May 2024, the People Activism Forum filed a writ petition in the Delhi High Court, urging SEBI to allow the IPO. In response, the NSE reapplied for an NOC in August. Two months later, NSE paid Rs 643 crore to SEBI as partial settlement related to the co-location case, signaling intent to resolve outstanding issues. However, SEBI flagged four concerns including over past trading outages, demands for ethical oversight, legal cases pending in the Supreme Court and NSE's control over NSE Clearing Corp.
In February 2025, the SEBI issued a detailed letter to NSE highlighting deficiencies and expectations. Soon after, Chairman Tuhin Kanta Pandey publicly clarified that the regulator was not blocking the IPO but ensuring "due diligence". In May, the exchange offered around Rs 1,400 crore to settle pending cases. Other issues that have been previously highlighted are to be dealt with post settlement.
After receiving the NOC on Friday, NSE is now planning to file a fresh DRHP by the end of March, sources told NDTV Profit. The entire IPO process, from regulatory approvals to listing, could take eight to nine months.
As of 2024, the National Stock Exchange is valued at Rs 4.7 lakh crore, as per media reports.
ALSO READ: Inside Hero FinCorp IPO: A Deadline-Driven Listing
Comprehensive Budget 2026 coverage, LIVE TV analysis, Stock Market and Industry reactions, Income Tax changes and Latest News on NDTV Profit.
