NSE IPO Latest Update: The Securities and Exchange Board of India (SEBI) has cleared the way for the National Stock Exchange’s long-awaited initial public offering. The move unlocks value for thousands of existing shareholders and marks a major milestone for India’s capital markets.
SEBI grants no-objection certificate
SEBI has issued a no-objection certificate (NOC) to the National Stock Exchange (NSE) for its proposed IPO, Zee Business managing editor Anil Singhvi said. The clearance allows NSE to move to the next formal step in the listing process.
According to sources cited by Singhvi, NSE is likely to file its draft red herring prospectus (DRHP) by the end of April or in early May. After the DRHP filing, SEBI will review the document before giving final approval for the public issue.
IPO structure likely to be offer-for-sale
The NSE IPO is expected to be largely an offer-for-sale. Existing shareholders are likely to sell part of their holdings through the issue.
Several institutional investors and banks had invested in NSE during its early years. These investors are expected to use the IPO as an exit route. Fresh capital raising by the exchange is expected to be limited.
A listing delayed since 2016
NSE has been attempting to list since 2016–17. The plan was stalled after regulatory action related to the co-location case.
The issue remained unresolved for several years. Even during the previous SEBI leadership, NSE did not receive approval despite repeated attempts.
The breakthrough came after NSE settled the co-location matter by paying Rs 1,388 crore. This settlement removed the biggest regulatory hurdle to the listing.
Role of management and regulatory shift
Singhvi said the sustained efforts of NSE managing director and chief executive Ashish Kumar Chauhan played a key role in reviving the IPO plan.
He also pointed to a more flexible regulatory approach under the new SEBI chief, which helped bring the long-pending process to a conclusion.
Strong interest from existing shareholders
NSE shares are among the most actively traded stocks in the pre-IPO market. The exchange already has a large and diverse shareholder base.
This has kept demand strong for the IPO. Many investors have been waiting for a formal listing to enable liquidity and transparent price discovery.
Where will NSE list?
The most obvious listing venue is the BSE, where NSE itself is already listed as a company. However, there is also the possibility of the Metropolitan Stock Exchange emerging as an alternative, if it becomes operational in time.
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