NSE IPO: Talks are being held with the exchange to resolve issues related to NSE IPO, said SEBI chief

New Delhi| The long-awaited initial public offering (IPO) regulatory review of the National Stock Exchange (NSE) is taking place. Market regulator chief Tuhin Kant Pandey has said that discussions are being held between the exchange and SEBI to resolve some issues.

SEBI’s concerns in the NSE IPO case mainly include compensation to management personnel and majority stake in the technology and clearing corporation. The exchange has resumed its listing process by applying for NOC from the Securities and Exchange Board of India (SEBI).

Although No Objection Certificate (NOC) has been filed by NSE, the timeline of the IPO is uncertain. Both sides are working on resolving key issues. Some of these are of a fundamental nature, including corporate governance.

Asked about a possible timeline for the IPO, Pandey told PTI, “All I can say at this time is that there are some issues…Which are being discussed between NSE and SEBI. We will try to resolve these issues with the intention of clarifying this going forward.”

NSE’s IPO plan has been stuck for the last eight years. The exchange first filed its draft papers in 2016. NSE wanted to raise Rs 10,000 crore through a proposal for sale on behalf of its existing shareholders. Existing shareholders wanted to sell 22 percent of their shares to the public.

However, SEBI did not approve NSE’s IPO due to regulatory concerns related to governance and co-location issue. Since then, NSE has approached SEBI several times for approval. In March, SEBI had announced the formation of an internal committee to probe NSE’s IPO. At that time, the market regulator had asked NSE to resolve all the issues.

The valuation of NSE is around Rs 4.7 lakh crore. According to the 2024 Burgundy Private Hurun India 500 Listed and Unlisted Companies list, India’s largest equity exchange is the 10th most valuable private company in the country even before the IPO.