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NSE IPO Set for 7-8 Months, STT Hike Won't Derail Plans: CEO Ashish Chauhan

The National Stock Exchange's Initial Public Offering is slated for the next 7 to 8 months, with its Draft Red Herring Prospectus to be ready in 3-4 months. CEO Ashish Chauhan confirmed the exchange finally received SEBI's No Objection Certificate after seeking it for a decade. He downplayed the impact of the increased Securities Transaction Tax announced in the Union Budget 2026, stating markets will absorb the change. Chauhan emphasized that India's strong growth momentum will continue to attract investors, mitigating any broader negative impact from the STT hike.

Key Points: NSE IPO Timeline 7-8 Months, STT Impact Minimal

  • NSE IPO expected in 7-8 months
  • DRHP preparation in 3-4 months
  • SEBI granted crucial NOC after decade-long wait
  • STT hike from Budget 2026 seen as absorbable
  • Strong economic growth to sustain investor interest
3 min read

NSE IPO to take 7-8 months, no major impact of STT increase on plans: Ashish Chauhan, MD and CEO

NSE CEO Ashish Chauhan says the exchange's long-awaited IPO is 7-8 months away. He also states the recent STT increase will not significantly impact markets or the listing.

"The stock markets will absorb the changes in STT and gradually adjust, with no significant impact - Ashish Chauhan"

Mumbai, February 1

The Initial Public Offering of the National Stock Exchange is likely in be rolled out in next 7 to 8 months, and the Draft Red Herring Prospectus will be prepared in the time frame of 3 to 4 months, said Ashish Chauhan, Managing Director and CEO of the National Stock Exchange, said on Sunday.

While speaking with ANI, Chauhan said, "We have been trying to get the No Objection Certificate (NOC) for the IPO since a decade, and we got the success last week when the Securities and Exchange Board of India (SEBI) Pandey gave the final nod."

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.

Speaking on the changes proposed in the Securities Transaction Tax (STT) announced in the Union Budget 2026, Chauhan said, "The stock markets will absorb the changes in STT and gradually adjust, with no significant impact on the asset quality of stock brokers or exchange-listed entities."

He also mentioned that the increase in STT is "unlikely" to affect the proposed IPO of NSE or companies that are already listed.

"Overall, the market tends to absorb such changes in its own way and gradually adjusts. Going forward, the asset quality of stock brokers and exchange-listed entities will not be significantly impacted," he said, adding that India's growth momentum is far stronger than these changes.

According to Chauhan, the country's strong economic growth will continue to attract more investors to the stock market, while investors will also explore other instruments such as futures and bonds. As a result, the hike in STT will not have any major impact on the broader market ecosystem.

In Union Budget 2026, the government proposed a significant hike in STT on futures and options trades. For futures contracts, STT has been increased from 0.02 per cent to 0.05 per cent. For options, STT on the premium has been raised from 0.1 per cent to 0.15 per cent, while STT on the exercise of options has also been increased to 0.15 per cent.

Securities Transaction Tax is a small levy charged by the government on every buy or sell transaction in the stock market, including shares, futures and options. While it may appear modest, STT directly increases the cost of trading, particularly for frequent traders, hedgers and arbitrageurs.

- ANI

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Reader Comments

P
Priya S
While I'm excited for the IPO, I hope the governance issues from the past are fully resolved. Investors need complete transparency, especially after the co-location controversy.
R
Rohit P
The STT hike is a concern for retail traders like me. Even a small increase adds up with frequent trading. Chauhan says markets will absorb it, but my brokerage costs are definitely going up.
S
Sarah B
Interesting perspective from the CEO. He's right that India's growth story is bigger than a tax tweak. Long-term investors shouldn't be too worried. The IPO timing seems well-considered.
V
Vikram M
ipo aa rahi hai to apply karna padega! NSE is the backbone of our markets. This is a piece of history. Hope the retail quota is good.
K
Karthik V
Respectfully, I disagree with Mr. Chauhan's downplaying of the STT impact. For derivatives traders, especially in options, this is a significant cost increase. It will dampen volumes, at least in the short term. The government should reconsider.
A
Ananya R
Good to have a timeline after all the delays. 7-8 months means maybe Diwali listing? Would be a great festive gift for investors 😊. Fingers crossed the process is

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