NSE IPO Moves Closer to Landmark Listing After Key Regulatory Hurdles Cleared
Sebi clears prospectus while Supreme Court dismissal removes a long-standing legal obstacle; proposed offer could raise around Rs 30,000 crore
NEW DELHI, Sept 8: The National Stock Exchange (NSE) has moved closer to its long awaited public listing after clearing major regulatory and legal hurdles, paving the way for what could become India’s largest ever initial public offering.
The Securities and Exchange Board of India (Sebi) has approved the exchange’s IPO prospectus, while the Supreme Court’s dismissal of a long-running case concerning access to market data has removed another major impediment to the listing.
The proposed offering is expected to raise around Rs 30,000 crore ($3.17 billion), according to reports, potentially making it the biggest primary-market fundraising exercise in the country.
The issue is structured as an offer for sale, meaning existing shareholders will sell their holdings. The exchange itself will not receive fresh capital from the transaction.
NSE is expected to initially list on the BSE because regulations currently prevent an exchange from directly listing on its own platform. It could subsequently seek permission for self listing after addressing Sebi’s concerns relating to conflicts of interest.
The planned market debut comes as NSE continues to maintain a dominant position in India’s equity and derivatives ecosystem. The exchange accounts for about 93 per cent of equity cash market turnover and remains one of the world’s leading derivatives trading platforms.
The IPO is likely to attract significant attention from domestic and international investors because of NSE’s central role in India’s capital markets and the scale of the proposed offering.
