The National Stock Exchange of India (NSE) has received regulatory clearance from the Securities and Exchange Board of India (Sebi) to proceed with an initial public offering (IPO), ending a decade-long pursuit to list on Indian stock exchanges. The exchange announced that its board had approved plans for the IPO, which will be executed through an offer for sale (OFS) by existing shareholders.
The approval marks a significant turning point for the NSE, whose listing attempts have been stalled since due to regulatory concerns and legal challenges, including a co-location controversy. Sebi’s clearance follows a recent indication from Sebi Chairman Tuhin Kanta Pandey that a no-objection certificate (NOC) would be issued by the end of .
A Decade-Long Wait Reaches Conclusion
The NSE first filed its draft red herring prospectus in , aiming to raise approximately ₹10,000 crore (approximately $1.2 billion USD based on current exchange rates) through the OFS. However, Sebi withheld approval citing governance lapses and issues related to the co-location facility, where certain brokers allegedly gained unfair advantages through faster access to market data. Since then, the NSE has repeatedly sought clearance from the regulator.
The proposed IPO will not involve the NSE raising fresh capital; instead, existing shareholders will dilute their stakes by selling a portion of their holdings to the public. This structure is typical of an OFS.
Committee Reconstituted to Oversee IPO Process
To facilitate the IPO process, the NSE board has reconstituted its IPO Committee. The committee will be chaired by Tablesh Pandey and will include public interest directors Srinivas Injeti, Prof Mamata Biswal, Abhilasha Kumari, and Prof Sivakumar, alongside NSE Managing Director and CEO Ashish Chauhan. This committee will serve as the central authority for the listing, defining procedures and establishing criteria for selecting merchant bankers and legal advisors to draft the draft red herring prospectus (DRHP).
Valuation and Market Impact
Analysts estimate the NSE’s valuation to be around ₹5 lakh crore (approximately $60 billion USD), making it poised to be one of the largest listings in India’s capital markets. The exchange currently has approximately 177,000 shareholders. The listing is being closely watched as a landmark event, given the NSE’s dominant position in the Indian equity derivatives market and its central role in the country’s financial infrastructure.
NSE Chairperson Srinivas Injeti expressed his delight at receiving Sebi’s approval, stating, “We are delighted to receive SEBI approval for our IPO — a significant milestone in our growth journey.” He added that the approval “reinforces confidence in NSE being an integral part of the Indian economy and a beacon of Indian capital markets.”
Timeline and Next Steps
Following Sebi’s NOC, the NSE expects the IPO process to take approximately six to eight months, according to recent statements from NSE Managing Director and CEO Ashish Chavan. The immediate next steps involve appointing merchant bankers and legal advisors to prepare the DRHP. Market estimates suggest the IPO could be launched within eight to nine months.
The approval from Sebi follows a period of increased scrutiny and reform within the NSE, aimed at addressing the regulatory concerns that previously hindered the listing process. The exchange has been working to strengthen its governance structures and ensure fair market practices.
The successful completion of the IPO would provide liquidity to existing shareholders and further enhance the NSE’s profile as a leading financial market infrastructure institution in India. It also signals a positive development for the Indian capital markets, demonstrating the regulator’s willingness to facilitate the listing of key market participants.
