The National Stock Exchange of India Ltd. is expected to launch its initial public offering this year, as the market regulator SEBI removed a key hurdle by issuing its no-objection certificate on Friday. The development follows years of stalemate on the IPO process due to the co-location case and regulatory scrutiny.
NSE is both India's largest bourse and the world's largest derivatives market by volume. It competes with smaller rival BSE Ltd. Here's a quick comparison of the two exchanges:
History
NSE was established in 1992, following recommendations from the Pherwani committee to modernise India's capital market. NSE got SEBI's recognition in 1993 and began operations in 1994 when it introduced the benchmark index Nifty 50.
On the other hand, Asia's oldest exchange BSE was established in 1875 under a banyan tree and founded by the Native Share and Stock Brokers Association. In 1986, BSE introduced its benchmark index named Sensex.
Market Share
NSE pioneered derivatives trading in India and remains the dominant player, especially in equity and index derivatives. The exchange has also introduced innovative products, such as weekly expiry options, sectoral indices, and interest rate futures. BSE entered the derivatives space much later and continues to have a smaller market share. While it has been catching up, NSE remains the go-to exchange for traders focusing on F&O strategies.
Recent data shows a changing competitive landscape between the two bourses across key market segments. In the futures and options (F&O) segment, NSE's market share declined to 61% in H1 FY26 from 74% in FY25. During the same period, BSE expanded its share to 38% from 26%. A similar trend is visible in equity options premium. NSE's share fell to 77% in H1 FY26 from 87% in FY25, while BSE's share increased sharply to 22% from 12%.
NSE has been a major beneficiary of the recent change in derivatives expiry. Since September 2025, the exchange moved its derivatives expiry day from Thursday to Tuesday. Following the shift, NSE's market share in the three days leading up to expiry improved sharply. Equity options premium market share averaged 86.1% during September to November, compared with just 51.2% in August, before the change. NSE also gained market share from Friday through Tuesday in the post-swap period, strengthening its dominance closer to expiry.
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Financials
Despite the market share shifts, NSE continues to maintain stronger profitability metrics. Its operating margins improved to 77% in H1 FY26 from 75% in FY25. BSE also saw margin expansion, with operating margins rising to 65% from 54%.
Return on equity (ROE) for NSE declined to 35% from 45%, while BSE's ROE improved to 44% from 33%.
Valuation
The BSE, which is listed on the NSE, has a market capitalisation of Rs 1.13 lakh crore as of Jan. 30, 2026.
As per recent reports, NSE plans to file a fresh draft IPO prospectus by March-end, with the exchange valued at $55 billion or around Rs 5 lakh crore based on unlisted share trading above Rs 2,000.
Globally, major exchanges trade at forward price-to-earnings multiples ranging from 10x to 30x. Indian exchanges such as BSE and MCX typically command higher valuations due to their stronger growth outlook.
According to brokerage B&K Securities, a 1% change in turnover leads to a 0.57% change in profits for NSE, compared with a 0.53% change for BSE, indicating slightly higher operating leverage for NSE.
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