The exchange is expected to take eight to nine months to launch the offering, which is likely to be structured as an Offer for Sale (OFS) and no fresh capital raised for the company | Photo Credit: REUTERS/FRANCIS MASCARENHAS
Regulator’s approval unlocks DRHP process after nearly a decade; settlement move on co-location cases and surge in unlisted shares signal listing momentum
The Securities and Exchange Board of India (SEBI) has issued a No Objection Certificate (NOC) for the National Stock Exchange’s proposed initial public offering (IPO), clearing a key regulatory hurdle that has held up the country’s largest bourse from tapping public markets for nearly a decade.
“We are delighted to receive SEBI approval for our IPO, a significant milestone in our growth journey. With SEBI’s approval, we embark on a new chapter of value creation for all our stakeholders. This approval also reinforces confidence in NSE being an integral part of the Indian economy and a beacon of Indian capital markets,” said NSE Chairperson Shri Srinivas Injeti.
With the NOC now in hand, the exchange is expected to take eight to nine months to launch the offering, which is likely to be structured as an Offer for Sale (OFS) and no fresh capital raised for the company.
Ongoing cases
The regulatory clearance comes even as SEBI continues to process NSE’s settlement application linked to the long-running co-location and dark fibre cases. NSE had approached the regulator in June 2025 seeking to close the proceedings under the consent mechanism and has offered close to ₹1,400 crore to settle the matter. The exchange has already made provisions of ₹1,297 crore in its books, in addition to a ₹100-crore deposit earlier made following a Securities Appellate Tribunal order.
“The regulator, through it’s market regulation department, has conveyed its no-objection for NSE to proceed with IPO-related filings,” said a SEBI official aware of the matter. The internal SEBI departments had broadly agreed to the settlement framework, prompting the regulator to issue the NOC without waiting for formal approval from the High Powered Advisory Committee. The proposal is expected to move to HPAC and thereafter, to SEBI’s whole-time members for final clearance, following which the regulator may seek withdrawal of related cases pending before the Supreme Court.
Market revels
The anticipation of the regulatory breakthrough has already renewed activity in NSE’s unlisted shares, with prices jumping 10-15 per cent over the past few months and some private market platforms quoting around ₹2,050 per share, taking the market capitalisation to around ₹5 lakh crore.
“NSE can now move toward updating and re-filing its offer documents, completing SEBI’s review process, and proceeding to a listing over the coming months. The exchange can officially be represented by merchant bankers, lawyers, and accountants in respect of addressing SEBI’s observations, finalise pricing, share allocation, and regulatory disclosures in the updated draft prospectus,” said Sumit Agrawal, Senior Partner at Regstreet Law Advisors and former SEBI officer.
NSE Managing Director and Chief Executive Ashish Chauhan had earlier indicated that once the written NOC is received, the exchange would immediately begin work on the offer documents, reiterating that the listing process could take six to eight months thereafter.
NSE had first filed for an IPO in 2016, but withdrew as regulatory probe gathered pace. With settlement talks nearing closure and SEBI’s green light now in place, India’s largest stock exchange appears closer than ever to its long-delayed market debut.