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NSE Board Approves IPO Via OFS, Reconstitutes Key Committee

The board of the National Stock Exchange has approved its long-awaited initial public offering, which will be conducted entirely as an offer-for-sale by existing shareholders with no fresh capital raise. It has reconstituted its IPO Committee, to be chaired by non-independent director Tablesh Pandey, to oversee the listing process. The move follows regulatory approval from SEBI received last month and marks a significant step after years of delays. The path to listing has been complicated by past governance issues, including a recent Rs 643 crore settlement with SEBI over a network connectivity case.

Key Points: NSE Board Approves IPO Through Offer for Sale

  • IPO approved as offer-for-sale
  • No fresh equity issuance
  • IPO Committee reconstituted
  • Follows SEBI green signal
  • Settled TAP case with Rs 643 crore penalty
2 min read

NSE board approves its IPO through OFS, reconstitutes Committee

NSE board approves IPO via offer-for-sale, reconstitutes committee chaired by Tablesh Pandey. A key step toward the long-awaited public listing.

"Considered and approved undertaking an initial public offering (IPO) through an offer for sale by existing shareholders - NSE"

Mumbai, February 6

The board of the National Stock Exchange on Friday approved the launch of its long-awaited initial public offering, paving the way for the country's largest stock exchange to move closer to a public listing.

The proposed IPO will be an entirely offer-for-sale (OFS) by existing shareholders, with no fresh equity issuance, the exchange said in a statement. This means the company will not raise new capital through the public issue, and the proceeds will go to the selling shareholders.

"Considered and approved undertaking an initial public offering (IPO) through an offer for sale by existing shareholders of the company (OFS), for the listing of the equity shares of face value of Re 1 each of the company," NSE said.

As part of the process, the board also approved the reconstitution of its IPO Committee to facilitate and oversee activities related to the public issue.

The revamped committee will be chaired by Tablesh Pandey, a non-independent director. It will include public interest directors Srinivas Injeti, Mamata Biswal, Abhilasha Kumari and G Sivakumar, along with Ashishkumar Chauhan, Managing Director and Chief Executive Officer of NSE.

The committee has been entrusted with overseeing and facilitating various IPO-related processes, with a focus on governance, regulatory compliance, and procedural discipline as the exchange advances toward listing.

The development marks a significant step in NSE's long-pending plan to go public, subject to regulatory approvals and market conditions.

Last month, NSE received the green signal from the Securities and Exchange Board of India (SEBI) to file for an IPO.

NSE has been seeking regulatory clearance for its public listing for several years, following governance concerns and the co-location controversy that came under SEBI's scrutiny.

NSE initially filed its Draft Red Herring Prospectus (DRHP) in December 2016. The process was delayed by regulatory challenges, particularly allegations of unfair access to its algorithmic trading platform in India.

Later in August 2024, the NSE reapplied to the Securities and Exchange Board of India (SEBI) for a no-objection certificate to proceed with its IPO.

In October 2024, the NSE settled its Trading Access Point (TAP) Architecture and Network Connectivity case by paying a penalty of Rs 643 crore to SEBI, which was probing an alleged deficiency on the part of the exchange and its top officials to deal with a situation wherein some high-frequency stock traders were found to be gaming the system.

- ANI

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Reader Comments

P
Priya S
Good move, but the fact that it's only an OFS and no fresh capital is being raised is a bit disappointing. The exchange itself won't get funds for expansion or tech upgrades. The money just goes to existing shareholders cashing out.
V
Vikram M
The co-location scandal and the Rs 643 crore settlement with SEBI still cast a shadow. The new IPO committee has a huge task to ensure governance is watertight this time. Public trust is everything for a stock exchange.
S
Sarah B
As a long-term investor, I'm cautiously optimistic. NSE is a monopoly with strong fundamentals. The listing will give us a chance to own a piece of India's financial infrastructure. The key will be the pricing.
R
Rohit P
Bhai, after all the delays since 2016, let's hope this gets done quickly. SEBI approval is there, market sentiment is good. This IPO will be a blockbuster for sure. Time to add some NSE shares to the portfolio!
M
Meera T
While this is positive news, I hope the board and the new committee prioritize small investors. Often in such large OFS, the big institutions get the lion's share. A fair allocation policy is needed.

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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