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NSE Gets SEBI Nod for Long-Awaited IPO, DRHP Filing Next

The National Stock Exchange has finally received approval from SEBI to proceed with its long-awaited initial public offering, ending a regulatory stall that lasted over a decade. The exchange will now finalize its draft red herring prospectus, with plans to file by the end of March. The IPO's delay was primarily due to governance lapses and the co-location case that required regulatory clearance. This listing is poised to be a landmark event for India's capital markets, as NSE is the country's most widely held unlisted company.

Key Points: NSE IPO Gets SEBI Approval, Eyes March DRHP Filing

  • SEBI ends decade-long regulatory hold
  • NSE to file DRHP by March end
  • IPO was stalled since 2016
  • One of India's most significant listings
2 min read

NSE finally gets SEBI nod for IPO, all eyes on DRHP now

SEBI approves NSE's IPO after decade-long delay. Exchange to finalize draft papers by March for one of India's biggest listings.

"We are delighted to receive SEBI approval for our IPO - a significant milestone in our growth journey. - Srinivas Injeti"

Mumbai, Jan 30

The National Stock Exchange on Friday announced it has received the SEBI approval for its long-awaited initial public offering.

NSE's IPO plans had been stalled for more than a decade as the markets regulator did not grant approval due to regulatory concerns related to governance lapses and the co-location case.

With SEBI's nod in place, NSE will now finalise the structure and timing of its IPO. NSE is reportedly said to be planning to file its draft listing papers by the March end, and is in discussions with investment bankers and law firms to finalise the IPO papers.

However, the NSE IPO depends on the clearing of the draft red herring prospectus (DRHP).

"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," said Srinivas Injeti, Chairperson, NSE.

"This approval also reinforces confidence in NSE being an integral part of the Indian economy and a beacon of Indian capital markets," he said in a statement.

NSE has been trying to list its shares since 2016. However, the plan was held up due to regulatory probes linked to its co-location facility and broader governance issues.

Ashishkumar Chauhan, Managing Director and Chief Executive Officer of the NSE, this month visited Tirupati with his family and offered prayers at the temple of Lord Venkateshwara, seeking blessings for the exchange, its members, shareholders and the country. He said that prayers were offered for the well-being of NSE and for the broader growth of the nation.

Earlier, SEBI Chairman Tuhin Kanta Pandey stated that NSE was expected to receive approval for its much-awaited IPO within this month.

Market participants were closely watching regulatory developments around NSE's proposed IPO, which is expected to be one of the most significant listings in India's capital markets. NSE is the most widely held unlisted firm in India.

- IANS

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Reader Comments

S
Sarah B
It's interesting to see the MD visiting Tirupati for blessings. Shows how much this IPO means to them after a decade of waiting. Wishing them the best, but the governance lapses from the past still need to be fully addressed for long-term investor confidence.
V
Vikram M
A decade of delay because of the co-location case. SEBI did the right thing by not rushing this. Now that they have the nod, I hope the process is transparent. This will be a landmark listing for sure.
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Priya S
As a small investor, I'm excited but also cautious. The article mentions it's the most widely held unlisted firm. I hope the IPO leaves enough on the table for new investors and isn't just an exit for existing shareholders.
R
Rohit P
This is big news for the Sensex and Nifty! NSE listing will add depth to our markets. All eyes on the DRHP now. Hope they price it reasonably, not like some recent IPOs that listed at a discount.
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Michael C
While the approval is a positive step, let's not forget the "regulatory concerns" and "governance lapses" that caused the delay. SEBI's approval is a start, but sustained good governance is what will make this a successful, long-term investment.

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