BIG NSE IPO Update: SEBI Chair Says 'We Are At Advanced Stage Of Issuing NOC To...'

Upcoming IPO: In a major development related to the National Stock Exchange's (NSE) much-awaited initial public offering (IPO), the markets regulator has reached a very advanced stage in the process of issuing a No Objection Certificate (NOC) for the NSE IPO, a move that could bring the landmark listing closer to reality.

The Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey said that the SEBI is likely to issue No Objection Certificate (NOC) to the NSE IPO, reported news agency ANI on Saturday.

"I think we are at a very advanced stage of issuing the NOC for the NSE IPO, maybe within this month," ANI quoted Pandey as saying. His statement has come as a major relief for the ipo-bound exchange. The NSE had planned to launch its IPO last year and had even filed its draft red herring prospectus (DRHP) in 2016. However, the NSE IPO was delayed at that time due to regulatory challenges.

NSE IPO Timeline

While SEBI chairman hinted that the market regulator may give NOC to the IPO in January, he didn't give any details on NSE IPO in the interview with ANI.

NSE IPO Plan And Multiple Delays

NSE had attempted to launch its IPO multiple times. NSE IPO saw multiple delays since 2016, following governance concerns and the co-location controversy that came under SEBI's scrutiny.

NSE initially filed its Draft Red Herring Prospectus (DRHP) in December 2016. The process was delayed by regulatory challenges, particularly allegations of unfair access to its algorithmic trading platform in India. Post failure to launch IPO in 2016, NSE applied to the SEBI for NOC with its IPO in August 2024, but couldn't get the NOC at that time.

In October 2024, the NSE settled its Trading Access Point (TAP) Architecture and Network Connectivity case by paying a penalty of Rs 643 crore to SEBI, which was probing an alleged deficiency on the part of the exchange and its top officials to deal with a situation wherein some high-frequency stock traders were found to be gaming the system.

Pandey said NSE has since carried out several internal changes in response to Sebi's concerns. These steps have included reshaping top management roles, reconstituting its board, improving compliance structures, and closing pending regulatory cases. These actions, according to Pandey, have helped move the Sebi NSE IPO proposal closer to final clearance.

About NSE IPO

NSE was founded in 1994 and is one of the country's oldest stock exchange. NSE offers a platform for trading across various asset classes including equities, derivatives and fixed income. As per NSE's IPO papers, filed in 2016, the company had intended to raise around Rs 10,000 crore through offer for sale by existing shareholders.