The National Stock Exchange (NSE), India’s largest bourse and the world’s top derivatives exchange by volume, has been attempting to go public since 2016. However, despite multiple efforts, the exchange has not received the regulatory green light due to pending legal issues and corporate governance concerns. Unlike its competitor BSE Ltd., which is already publicly traded, NSE's IPO journey remains stalled.

Behind-the-Scenes Appeal to Finance Ministry
Sources familiar with the matter claim NSE has approached the Ministry of Finance to help resolve its long-standing regulatory tussle with SEBI. The request came after SEBI failed to issue a no-objection certificate (NOC) following NSE’s March 2025 application. The exchange reportedly urged the ministry to intervene and facilitate dialogue with SEBI’s new leadership in order to break the deadlock.

NSE Publicly Refutes Intervention Claims
Following the publication of reports suggesting it sought government help, NSE issued a strong denial. The exchange stated it has not communicated with the Government of India about its IPO in the past 30 months. While it remained silent on media queries before the story broke, it later asserted that no such request for intervention had been made, contradicting insider reports.

Repeated Attempts Over the Years
NSE’s appeal to the finance ministry is not a first. The exchange had previously sought similar support in November 2019, twice during 2020, and again in August 2024. Despite these repeated efforts, the IPO remains in limbo, much to the frustration of major investors including Life Insurance Corporation of India (LIC), State Bank of India (SBI), Morgan Stanley, and Canada Pension Plan Investment Board, all of whom are seeking an exit.

SEBI’s Concerns: Governance & Leadership Issues
The primary barrier to approval, according to sources within SEBI, is inadequate governance at NSE. One major sticking point is the delayed appointment of a chairman to the board, with SEBI reportedly slow to approve NSE’s nominee submitted in 2022. The regulator has also flagged concerns about the exchange’s top-level hiring practices, though NSE maintains that its processes fully comply with SEBI norms.

Allegations of Regulatory Bias
In its internal communication to the finance ministry, NSE reportedly questioned SEBI’s neutrality. The exchange cited recent policy changes affecting the futures and options market, claiming they disproportionately harmed NSE compared to rival BSE. Additionally, it criticized SEBI’s proposal asking exchanges to divest from clearing corporations, arguing that the move could destabilize market operations and increase compliance costs.

SEBI Holds Firm on Public Interest
Tuhin Kanta Pandey, the new SEBI chairman as of March, has acknowledged the situation publicly. He affirmed that while SEBI is working towards resolving the impasse, commercial objectives will not be prioritized over broader public interest. According to insiders, multiple departments within SEBI remain unconvinced that NSE has addressed all compliance and governance concerns, making the issuance of an NOC unlikely for now.

Outlook Remains Uncertain
Despite being a cornerstone of India’s financial market infrastructure, NSE's route to the public market remains blocked. Unless governance concerns are conclusively resolved and regulatory confidence is restored, the IPO will likely remain a distant goal. Whether or not the government steps in to mediate, the exchange must now navigate both perception challenges and technical regulatory requirements to move forward.