SEBI Chairman Tuhin Kanta Pandey has indicated that the long-pending initial public offering (IPO) of the National Stock Exchange (NSE) is finally on a path toward resolution. Speaking at the ASSOCHAM 16th Capital Market Conference on May 22, Pandey stated that the outstanding concerns are being actively addressed and a formal nod is likely soon. “We will go ahead with it shortly,” he affirmed, underlining the regulator’s confidence in a positive outcome.

1. NSE-SEBI Engagement Gathers Momentum
When probed about the IPO timeline, Pandey noted that both SEBI and NSE are in advanced stages of discussions, resolving key concerns collaboratively. “They are working through the issues. I am hopeful this will be resolved soon so we can move forward,” he said, reinforcing hopes of a long-awaited breakthrough in the IPO journey of one of India’s most prominent financial institutions.

2. Multiple Hurdles Addressed Over the Years
This is not the first time NSE has sought clearance from SEBI for its public listing. The exchange submitted its IPO prospectus back in December 2016. Since then, NSE has repeatedly reached out to the regulator seeking a No Objection Certificate (NOC), with earlier requests made in November 2019, twice during 2020, and again in August 2024. Each of these attempts faced regulatory hurdles, delaying the process.

3. Fresh Response to SEBI Observations
In March this year, NSE submitted another formal request for an NOC, addressing previous concerns raised by SEBI in February. These included matters related to technology systems, governance structures, the role and remuneration of key management personnel (KMP), the ownership and operations of the clearing corporation, and unresolved legal issues, particularly the infamous co-location case.

4. Co-location Case No Longer a Major Obstacle
One of the most significant challenges in NSE’s IPO journey has been the co-location controversy, which raised serious questions about the exchange's governance practices. However, SEBI has recently closed proceedings against former NSE officials involved in the matter. This regulatory development has significantly eased the path for NSE’s listing efforts.

5. Investor Base Hits Landmark Milestone
The NSE recently surpassed a major milestone, with its shareholder count crossing the one lakh mark. This makes it one of the largest unlisted companies in India in terms of investor participation. Interestingly, this figure outpaces the investor base of many already-listed companies, further highlighting the market's growing interest in NSE's eventual public debut.

6. IPO Prospects and Market Impact
NSE’s initial IPO plan, filed with SEBI in 2016, targeted a fundraise of approximately ₹10,000 crore. The stock exchange remains highly sought after in the unlisted market, with its shares actively traded in the grey market. Once listed, NSE will follow in the footsteps of its main rival, BSE (Bombay Stock Exchange), which went public in 2017 and became India’s first listed stock exchange.

Final Word: IPO Roadmap Close to Clarity
According to Pandey, SEBI and NSE are on track to finalize a roadmap that resolves lingering concerns. Discussions around technology, governance, ownership patterns, and litigation appear to be progressing positively. With momentum picking up and confidence building among stakeholders, the long-delayed NSE IPO seems finally poised to become a reality in the near future.