NSE IPO Likely To Get SEBI Nod By August: Report

The Securities and Exchange Board of India (SEBI) is expected to approve the initial public offering (IPO) of the National Stock Exchange (NSE) by August 2026, Moneycontrol reported.

This regulatory clearance will pave the way for investor roadshows and a potential September launch, the report said.

According to the report, merchant bankers have scheduled a global investor outreach programme starting July 17 across key financial hubs in the US, UK, Hong Kong and Singapore.

The NSE declined to comment on the timeline or roadshows. An NSE spokesperson said that the company has filed the Draft Red Herring Prospectus (DRHP) with SEBI and it cannot provide further comments at this stage, as per Moneycontrol.

The NSE dominates India's equity derivatives market. It ranks among the world's largest derivatives exchanges by trading volume, heavily driven by rising retail participation.

Delinking Co-Location Hurdles

The routine IPO review process resumed after regulators separated past controversies from the current filing.

As the key issue of co-location and dark fibre is already delinked from the IPO and is in the settlement process, the major issue is out; hence, the exchange and SEBI will have to focus on the rest of the things only in routine course, Moneycontrol quoted a merchant banker as saying.

The NSE originally filed its DRHP in December 2016. The regulator subsequently halted the listing process over concerns arising from the exchange's co-location and dark fibre matters.

The exchange filed a settlement application for these matters on June 20 last year. It received a no-objection certificate from SEBI on January 30 this year and submitted a fresh DRHP on June 17.

Historical Regulatory Timelines

Market infrastructure institutions historically face varied SEBI review timelines. BSE Limited filed its DRHP on September 12, 2016 and received SEBI's observation letter on December 30, 2016, taking approximately 3.5 months.

The MCX IPO approval took roughly seven months. The commodity exchange filed its documentation on February 23, 2012 and secured its observation letter on September 27, 2012.

Depository listings progressed through the regulatory pipeline much faster. CDSL took 66 days to secure clearance, filing on January 27, 2017 and receiving approval on April 3, 2017. Similarly, NSDL required 83 days, filing on July 7, 2023 and getting clearance by September 28, 2023.

Scale and Approval Hierarchy

The NSE IPO issue size is reportedly projected at around ₹30,000 crore. This valuation makes it one of India's biggest public offerings.

Issues of this magnitude demand top-tier regulatory clearance. Under SEBI's delegation of powers, issues above ₹10,000 crore require the personal approval of the SEBI Chairman.

Lower financial thresholds trigger different approval requirements. Issues between ₹5,000 crore and ₹10,000 crore require a Whole-Time Member's nod.

Executive Directors clear issues between ₹750 crore and ₹5,000 crore. Issues of less than ₹750 crore can be cleared between a Deputy General Manager and a Chief General Manager.