The National Stock Exchange of India (NSE), one of the world’s largest exchanges, has long been on the radar of investors awaiting its much-anticipated IPO. But its road to listing has been anything but smooth. Since first announcing its IPO plans back in 2016, the exchange has faced a series of regulatory and governance hurdles that have kept its listing in limbo for nearly a decade.
Today, however, that logjam appears to be finally breaking.
Several critical issues that had stalled NSE’s IPO are now close to resolution. Chief among them was the concern raised by the SEBI regarding NSE’s ownership of its clearing subsidiary—NSE Clearing Ltd. (NCL). The regulator flagged this as a potential conflict of interest, given the vertically integrated structure of the exchange and its clearing arm. After years of back and forth, this issue has now been addressed, paving the way for regulatory comfort.
Another major sticking point was the co-location case—a governance issue that cast a shadow on NSE’s internal controls and compliance standards. In 2019, SEBI had returned the IPO proposal citing these concerns. However, with significant corrective actions and reforms implemented by the exchange, SEBI appears to be satisfied with the progress, and that chapter too is nearing closure. If SEBI accepts the proposed settlement, it will issue the much-awaited No-Objection Certificate (NOC), allowing NSE to formally initiate its IPO process. The exchange is expected to file its Draft Red Herring Prospectus (DRHP) soon after. Preparing the DRHP could take approximately 4–5 months, as it requires updated audited financials and regulatory disclosures. With these steps in motion, NSE is targeting a public listing in the Q4FY26.
The exchange already has a diverse shareholder base with nearly 1 lakh public shareholders, making it one of the largest pre-IPO floats in Indian corporate history. With regulatory clarity improving and legacy issues resolved, the path to listing seems clearer than ever.
While the timing of NSE’s IPO is yet to be formally announced, what’s evident is this: the stage is finally set for one of India’s most awaited listings. And when it does happen, it will be a landmark moment for Indian capital markets.
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