When will the IPO of the National Stock Exchange finally get off the ground? That's the big question investors have been asking.
In latest developments, NSE has offered 1,000 crore rupees or 118 million dollars to settle a long-standing dispute with capital markets regulator SEBI, as per a Bloomberg report. This move could finally clear the path for its much-delayed IPO.
The Bloomberg report further adds that, the regulator is also keen to settle the legal issue to enable NSE to secure a No Objection Certificate, which is key to kicking off the listing process.
The NSE IPO has been stuck for more than eight years. SEBI had earlier halted the exchange's listing plans due to multiple cases dating back to 2015, which included the co-location controversy. There were allegations about some high-speed brokers placing their servers physically closer to NSE’s, giving them quicker access to data—and an unfair advantage over others.
Now, the exchange has formally applied for a No Objection Certificate from SEBI.
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On May 22, SEBI Chairman Tuhin Kanta Pandey commented on the issue indicating signs of a potential settlement.
"All the outstanding issues will be resolved and we will move forward...NSE and Sebi are talking, they are resolving the issues and I'm very hopeful, it will be cleared and will move forward," Pandey told reporters at an event organised by Assocham.
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 Rs 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 Rs 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.
