NSE IPO Finally on the way as SEBI Gives Regulatory Green Signal

After years of waiting, delays and regulatory hurdles, the National Stock Exchange’s IPO is finally turning from an idea into real action.

India’s market regulator, the SEBI, has given its much awaited no objection certificate to the NSE. This approval removes the biggest obstacle for the country’s largest stock exchange to go public. Investors, market watchers and many unlisted shareholders have been waiting for this moment since 2016.

What SEBI’s green signal really means

SEBI’s approval allows the NSE to formally move ahead with its IPO plans. The exchange is likely to file its draft listing papers by the end of March. It is already in discussions with investment banks and legal advisers to finalise the size, structure and timing of the issue.

In simple terms, the paperwork starts now. Once the draft papers are filed, SEBI will study them and decide on final approval. If everything stays on track, the NSE could enter the stock market in the coming months.

A long journey with many setbacks

The NSE’s IPO journey has been far from smooth. The exchange first planned to go public nearly a decade ago. Those plans hit a wall after probes into its co location facility, where some brokers were accused of getting faster access to trading systems. The case raised serious concerns around fairness and governance, forcing regulators to pause the IPO.

The issue also reached the Supreme Court, adding to the uncertainty. To put the matter to rest, NSE last year offered to settle the case by paying ₹1,387 crore. SEBI’s in-principle approval of this settlement helped clear the way for the no-objection certificate.

Also read: Role and Functions of SEBI: Why It Matters to Investors

Why this IPO matters

This is not just another public offering. The NSE is the backbone of India’s equity markets and handles most of the country’s daily trading volumes. Its listing is expected to be one of the biggest moments in India’s capital market history.

The exchange already has a huge unlisted investor base with nearly 1.7 lakh shareholders. In the unlisted market, NSE is valued at close to ₹5 lakh crore, making it one of India’s most valuable institutions. For these investors, the IPO finally offers a chance at liquidity and fair price discovery.

A look at the numbers

Even as regulatory issues ease, NSE’s recent financial results show that challenges remain. In the September quarter, the exchange reported a 33% drop in profit after tax. Revenue from operations fell by 18% compared to the same time last year.These figures reflect both market conditions and the cost of settling past issues. These figures reflect both market conditions and the cost of settling past issues.

Still, analysts say NSE’s core business remains strong. Its dominant position and high entry barriers make it hard for competitors to catch up.

What happens next

With SEBI’s clearance in place, attention now turns to timelines. The draft prospectus will include important details like financial information, risks and how the exchange plans to use the money from the IPO. The final launch date will also depend on market conditions.

For now, one thing is clear. After years of uncertainty, the NSE IPO is no longer a question of if, but when. And when it does happen, it will mark a historic moment for India’s capital markets.