NSE IPO Update: SEBI Confident Issues Near Resolution & Launch

Important news about NSE IPO issues are close to being fixed, according to the SEBI chief.

Good news for everyone waiting for the National Stock Exchange (NSE) to launch its Initial Public Offering (IPO)! It looks like the long wait might finally be over soon. Tuhin Kanta Pandey, the head of SEBI (the main regulator for India’s stock market), recently said that all the problems holding up NSE’s IPO will be sorted out very soon.

It Took a Long Journey

NSE has been hoping to go public for a long time. The company gave SEBI their submissions roughly nine years ago. For a number of reasons, the NSE IPO hasn’t yet received its approval. But SEBI’s chairman, Mr. Pandey, is confident that things are getting better. In the past, he made it clear that SEBI is moving fast to solve all the identified problems.

What Were the Hold-Ups?

SEBI had a few things they were worried about regarding the NSE IPO. These included:

• How top managers were paid: SEBI wanted to make sure the compensation for key management staff was fair and transparent.
• Technology concerns: There were some questions about NSE’s technology systems.
• Ownership in the clearing company: SEBI had concerns about who owned the majority of the clearing corporation, which is a very important part of how stock market transactions are processed.

Mr. Pandey recently spoke at an event and mentioned that all these issues would be resolved. He made it clear that NSE and SEBI are talking things over and working together to fix these problems. He sounded very hopeful that the whole situation would be sorted out. When asked when this would happen, he couldn’t give an exact date, but he promised it would be “soon.”

The NSE IPO Journey So Far

NSE desired to go public via the stock exchange in 2016. Then, the company announced a plan to raise 10,000 crore rupees (a very high amount!) by selling about 22% of shares that existing shareholders already own.

Still, SEBI didn’t give its approval because there were issues with NSE’s operations and because of a large scam called co-location. There was an issue in this scam since some brokers were permitted quicker use of the NSE trading systems, causing serious concern.

In 2019, SEBI asked that NSE sort out co-location scam concerns before being allowed to move forward with its IPO. Since then, NSE has sent four requests to SEBI, in 2019, twice in 2020 and again in 2024.

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Clearing Up Old Issues

NSE settled with a 643 crore rupee fine in October 2024 to handle one portion of the co-location scam. This was a major part of solving the issue. Even so, there are other court cases related to the same scam which have not been settled by the Supreme Court.

Lately, on March 28th this year, NSE officially requested that SEBI issue it a “No Objection Certificate” for its IPO. The NOC is vital since NSE won’t file IPO papers until they get it from the regulator.

So, it looks like we could see the NSE IPO in the near future at last! We should remain attentive about this factor, especially if you follow the Indian market.