NSE IPO: Sebi chief says discussion on with bourse to resolve key issues

The long-awaited initial public offering (IPO) of the Stock Exchange (NSE) is under regulatory review, with discussions ongoing between the bourse and Sebi to resolve certain issues, markets regulator chief Tuhin Kanta Pandey said.

This was first reported by CNBC-TV18 on April 17.

Sebi’s concerns include the compensation given to key management personnel, technology and the majority ownership in Clearing Corporation, among others.

The bourse has restarted its listing process by applying for an NOC at the Securities and Exchange Board of India (Sebi).

While a No Objection Certificate (NOC) has been filed, the timeline for the IPO remains uncertain as both parties work to resolve key issues — some of which are fundamental in nature, including corporate governance.

When CNBC-TV18 asked about a possible timeline, Pandey said that the intention is to take a decision on NSE’s IPO “as soon as possible.”

To PTI, too, Pandey said, "I can only say at this point that there are certain issues…which have been under discussion between NSE and Sebi. And with a very intent to clear it going forward, we will try and resolve these issues."

It can be noted that NSE’s IPO plans have been stuck for over eight years now. The bourse first filed its draft papers in 2016 to mobilise ₹10,000 crore through an offer for sale by existing shareholders, who were looking to offload 22 per cent shares to the public.

However, approval was not granted by Sebi due to regulatory concerns pertaining to governance and the co-location matter. Since then, NSE has approached Sebi several times for clearance.

In March, Sebi announced the formation of an internal committee to look into NSE’s IPO, and the markets regulator asked NSE to resolve all the issues.

NSE has a valuation of around ₹4.7 lakh crore. The largest Indian equity bourse is already the 10th-most valuable private company in the country, as per the 2024 Burgundy Private Hurun India 500 list of listed as well as unlisted companies.