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NSE IPO Still Months Away Despite SEBI's In-Principle Nod, Says MD

NSE MD and CEO Ashish Chauhan confirmed that SEBI has given an in-principle clearance for the exchange's long-awaited IPO, though official intimation is still awaited. Once the No Objection Certificate is formally issued, the NSE will begin preparing its Draft Red Herring Prospectus, a process expected to take three to four months. Following that, SEBI's review will take an additional two to four months, putting the actual IPO timeline at roughly seven to eight months post-NOC. The listing has been delayed for years due to regulatory scrutiny, including a recent Rs 643 crore settlement in a market access case.

Key Points: NSE IPO Timeline: SEBI Nod Received, Listing 7-8 Months Away

  • SEBI gives in-principle nod for NSE IPO
  • Official NOC still pending from regulator
  • DRHP preparation will take 3-4 months
  • Full IPO process 7-8 months after NOC receipt
2 min read

SEBI's in-principle nod "good news" but IPO still months away: NSE MD Ashish Chauhan

NSE MD Ashish Chauhan says SEBI's in-principle IPO clearance is good news, but the public listing is still 7-8 months away after official NOC.

"That's good news, and we have not yet got the intimation - Ashish Chauhan"

Mumbai, January 15

NSE MD and CEO Ashish Chauhan on Thursday asserted that the SEBI in-principally clearing the way for their IPO is "good news", but its actualisation will still take a few months.

This comes after the SEBI Chairman recently indicated to clear NOC for the IPO, possibly this month. Tuhin Kanta Pandey said that the Board is at a very advanced stage of issuing the No Objection Certificate (NOC).

"Possibly within this month," the SEBI Chairman had indicated, raising expectations of progress on the listing front.

Even as reports indicate that the markets regulator has, in principle, agreed to the exchange's settlement application in the unfair market access case, which had apparently been a major hurdle for the much-awaited IPO, Chauhan said they had not yet officially received the "intimation" from SEBI.

"That's good news, and we have not yet got the intimation," he said, talking to ANI, when asked to respond to SEBI's reportedly in-principle clearance.

Once SEBI officially issues the no-objection certificate to NSE, Chauhan said, "then only we will be able to file DRHP."

Draft Red Herring Prospectus (DRHP) is typically a document that consists of the company's financial details, future prospects, and other key aspects regarding the business and is being filed to the regulator to raise money essentially via public offerings of its shares.

Preparing DRHP, according to Chauhan, will take three-four months. "Then we'll file with SEBI again. They have a process which takes two-three months at least, or sometimes four months. So it's still seven-eight months away after the NOC is received," Chauhan added.

Notably, the 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 to see the ₹643 crore settlement cleared the air. Governance issues needed to be addressed before listing. This IPO will be a landmark for Indian capital markets. Hope the process is smooth and transparent from here.
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Aman W
"Good news" but still 7-8 months away? That's a classic bureaucratic timeline. While I understand due diligence is important, the delay since 2016 has been excessive. Hope SEBI sticks to the indicated timeline this month for the NOC.
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Sarah B
As someone tracking Indian markets, this is significant. The NSE is the backbone. The co-location controversy was a major setback. The settlement and this progress show a maturing regulatory environment. Cautiously optimistic.
K
Karthik V
The MD is being very practical. Filing DRHP, getting SEBI observations, RHP... it's a long road. Better to be clear now than create hype. Will start saving to apply for this one when it finally opens! 💰
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Nisha Z
Respectfully, the communication seems a bit mixed. SEBI Chairman says "possibly this month," but NSE hasn't received official intimation. A more synchronized update between regulator and the exchange would boost confidence.

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