NSE likely to get SEBI NOC for IPO in two-months

The IPO should not face any hold ups now except the usual procedures,” said a source aware 
| Photo Credit:
FRANCIS MASCARENHAS

The National Stock Exchange’s long-awaited IPO may finally move forward as the Securities and Exchange Board of India (SEBI) is expected to issue a no-objection certificate in the next couple of months, following acceptance of the exchange’s ₹1,388-crore settlement proposal to resolve the pending co-location and dark-fibre cases, sources aware of the matter said.

Last week, the largest stock exchange filed a final submission to pay ₹ 1,165 crore to settle a co-location case alleging that certain brokers received preferential server access at NSE, and ₹ 223 crore for a dark fibre matter regarding misuse of private networking lines.

The decade-old co-location case, which is currently before the Supreme Court, can be withdrawn through a plea once the settlement is accepted. SEBI’s approval is expected in July after its internal committee, high powered advisory committee, and whole-time members formally review and accept the settlement, sources said.

IPO

“Expect an expedited approval as the settlement amount was arrived at through discussions with SEBI and as per its regulations…The IPO should not face any hold ups now except the usual procedures,” said a source aware of the matter.

An email sent to SEBI and NSE seeking comments did not elicit a response.

No other hurdles are expected to remain for the regulator’s NOC to NSE’s IPO after these legal cases are closed. The stock exchange plans to file a draft red herring prospectus (DRHP) by the end of the year with an aim to list before the current financial year ends or in FY26, depending on market conditions, said another source.

SEBI Chairman Tuhin Kanta Pandey recently said that the proposal on independent ownership of clearing houses, which could have been a hold up in NSE’s IPO, could not be converted into a rule, and the focus has now shifted to making them financially independent through unbundling of exchange charges. NSE’s IPO, which has been stuck for nearly a decade, seems to have been expedited since the new chairman took over in March.

The exchange first filed its draft papers in 2016, after which NSE has sought an NOC from SEBI at least four times. NSE’s unlisted shares have surged to ₹ 2,300 apiece from ₹ 1,600 three months ago, as investor interest surged due to talks of the IPO moving ahead.

PSUs own around 31 percent or shares of NSE worth more than ₹1,70,000 crore, many of whom will see positive net worth when the shares of NSE get listed. Some of the large entities like LIC will also make huge profits on NSE share listing allowing them to expand their business without raising additional equities.

Published on June 25, 2025