02 May 2025
The long-awaited initial public offering (IPO) of the National Stock Exchange (NSE) is currently under regulatory review. Discussions are ongoing between the exchange and the Securities and Exchange Board of India (Sebi) to address certain concerns, as stated by Sebi's chief, Tuhin Kanta Pandey.
Sebi has raised issues regarding the compensation for key management personnel, technology, and the majority ownership of the Clearing Corporation, among other matters.
The NSE has restarted its listing process by applying for a No Objection Certificate (NOC) from Sebi. While this application has been submitted, the timeline for the IPO remains uncertain as both parties work to resolve key issues, some of which are fundamental, such as corporate governance. In an interview with PTI, Pandey commented on the timeline, stating, "I can only say at this point that there are certain issues... which have been under discussion between NSE and Sebi. We are committed to resolving these issues moving forward."
It is worth noting that NSE's IPO plans have been stalled for over eight years. The exchange first filed its draft papers in 2016, aiming to raise Rs 10,000 crore through an offer for sale of 22 percent of shares by existing shareholders.
However, Sebi did not approve due to regulatory concerns related to governance and the co-location matter. Since then, NSE has approached Sebi multiple times for clearance.
In March, Sebi announced the formation of an internal committee to review NSE's IPO and requested that the exchange resolve all outstanding issues.
NSE is valued at approximately Rs 4.7 lakh crore and is the largest equity bourse in India. According to the 2024 Burgundy Private Hurun India 500 list of both listed and unlisted companies, it ranks as the 10th-most valuable private company in the country.
The long-awaited initial public offering (IPO) of the National Stock Exchange (NSE) is currently under regulatory review. Discussions are ongoing between the exchange and the Securities and Exchange Board of India (Sebi) to address certain concerns, as stated by Sebi's chief, Tuhin Kanta Pandey.
Sebi has raised issues regarding the compensation for key management personnel, technology, and the majority ownership of the Clearing Corporation, among other matters.
The NSE has restarted its listing process by applying for a No Objection Certificate (NOC) from Sebi. While this application has been submitted, the timeline for the IPO remains uncertain as both parties work to resolve key issues, some of which are fundamental, such as corporate governance. In an interview with PTI, Pandey commented on the timeline, stating, "I can only say at this point that there are certain issues... which have been under discussion between NSE and Sebi. We are committed to resolving these issues moving forward."
It is worth noting that NSE's IPO plans have been stalled for over eight years. The exchange first filed its draft papers in 2016, aiming to raise Rs 10,000 crore through an offer for sale of 22 percent of shares by existing shareholders.
However, Sebi did not approve due to regulatory concerns related to governance and the co-location matter. Since then, NSE has approached Sebi multiple times for clearance.
In March, Sebi announced the formation of an internal committee to review NSE's IPO and requested that the exchange resolve all outstanding issues.
NSE is valued at approximately Rs 4.7 lakh crore and is the largest equity bourse in India. According to the 2024 Burgundy Private Hurun India 500 list of both listed and unlisted companies, it ranks as the 10th-most valuable private company in the country.
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