The National Stock Exchange’s IPO may soon become reality as SEBI reviews its application. SEBI Chairperson Tuhin Kanta Pandey said the regulator is resolving key issues while prioritizing public interest. NSE filed for a No Objection Certificate on March 28, a crucial step before launching its long-awaited public offering.

NSE IPO Launch: SEBI's Tuhin Kanta Pandey Signals Readiness to Approve NSE IPO Soon

The National Stock Exchange (NSE) — India's largest stock exchange — has been trying to launch its Initial Public Offering (IPO) since 2016. But after multiple delays and regulatory hurdles, it now seems the IPO could finally become a reality.

What’s Happening Now?

On March 28, 2025, NSE filed an application with SEBI (Securities and Exchange Board of India) seeking a No Objection Certificate (NOC) — a critical step before it can proceed to file the Draft Red Herring Prospectus (DRHP) and formally launch its IPO.

SEBI Chairperson Tuhin Kanta Pandey confirmed on April 17 that the regulator is currently reviewing NSE’s IPO proposal. He stated that SEBI is actively working to sort out all remaining issues so the IPO can move forward very soon.

“We will not allow commercial interest to take over the general public interest, and it is for the regulator to ensure that,” Pandey emphasized.

Why Has the IPO Been Delayed for So Long?

NSE first tried to go public in 2016, but was blocked due to a long-running case related to unfair trading access (called the co-location issue). In 2019, SEBI fined NSE ₹11,000 crore and returned its listing documents.

Since then, NSE has tried several times — including in 2019, 2020 (twice), and 2024 — to get SEBI’s NOC, without success. However, things now appear to be moving in the right direction.

What Does SEBI Want NSE to Fix?

Before approving the IPO, SEBI has laid out a few key conditions:

Improve governance: SEBI asked NSE to increase salaries for key management personnel (KMPs) to align with best practices.

Reduce control over NSE Clearing: NSE must reduce its stake in NSE Clearing (currently 100%) to below majority ownership, meaning less than 50%.

Fix technical issues: SEBI has flagged several technical glitches faced by the exchange and wants them resolved.

Legal clarity: All ongoing legal cases related to the co-location scandal must be resolved before NSE can proceed.

What’s the Value at Stake?

According to the Burgundy Private Hurun India 500 list (Feb 2024), NSE’s valuation jumped 201% in 2024, reaching around ₹4.7 lakh crore (roughly $56 billion). In September 2024, it was valued at ₹3.12 lakh crore.

If allowed to go public, NSE could raise billions, potentially making it one of the biggest IPOs in India’s history.

When Will the IPO Happen?

While there’s no fixed date yet, SEBI has made it clear that it wants to take a decision “as soon as possible.”

If SEBI grants the NOC soon, NSE could file its DRHP and kickstart the IPO process in the coming months.

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