NSE Board Clears Path for Long-Awaited IPO Through Offer for Sale

Board Approves IPO Structure and Reconstitutes IPO Committee​

The board of the National Stock Exchange of India on Friday approved the launch of its long awaited initial public offering, marking a significant milestone in the exchange’s listing journey. The proposed IPO will be conducted entirely through an offer for sale by existing shareholders, with no fresh issue component involved.

The approval follows the recent no objection certificate granted by the Securities and Exchange Board of India, which has enabled the exchange to move ahead with its listing plans after more than a decade of delays.

At the same meeting, the NSE board approved the reconstitution of its IPO Committee to oversee and facilitate the execution of the public issue process.

New IPO Committee and Governance Oversight​

The reconstituted IPO Committee will be chaired by Tablesh Pandey, non independent director. The committee will include public interest directors Srinivas Injeti, Mamata Biswal, Abhilasha Kumari and G Sivakumar, along with Ashishkumar Chauhan, managing director and chief executive officer of NSE.

The committee has been tasked with supervising and facilitating various IPO related processes, with a focus on governance standards, regulatory compliance and procedural discipline as the exchange prepares for listing.

In its statement, NSE said the board considered and approved undertaking an initial public offering through an offer for sale by existing shareholders for the listing of equity shares of face value Re 1 each.

Approval for Coal Exchange Subsidiary​

In addition to the IPO decision, the NSE board approved the incorporation of a wholly owned subsidiary for setting up a coal exchange, subject to regulatory approvals. The proposed entity may be named National Coal Exchange, Bharat Coal Exchange or India Coal Exchange, as approved by the Ministry of Corporate Affairs.

The subsidiary will be incorporated in line with the proposed Coal Regulations 2025 notified by the Ministry of Coal. NSE has approved a capital infusion of up to Rs 100 crore for the proposed coal exchange subsidiary.

Long Road to Listing After Regulatory Hurdles​

The no objection certificate granted by Sebi last Friday marks a crucial step for NSE, whose IPO plans were stalled for nearly a decade due to regulatory issues linked to the co location controversy.

NSE had first filed draft offer documents in 2016 to raise around Rs 10,000 crore through an offer for sale by existing shareholders. However, approval was withheld due to governance concerns and the unfair market access case. Since then, the exchange has approached the regulator multiple times seeking clearance.

Last month, Sebi chairman Tuhin Kanta Pandey said the regulator had granted in principle approval to NSE’s settlement application in the unfair market access case, a development widely seen as paving the way for the exchange’s public listing.

NSE filed its settlement plea in June 2025 and, after years of litigation, offered to pay Rs 1,388 crore in 2025 to settle the charges and move ahead with its IPO plans.

One of India’s Largest Expected Public Issues​

The proposed IPO is expected to be among the largest offerings in India’s capital markets. NSE currently has about 1.77 lakh shareholders and is valued at over Rs 5 lakh crore in the unlisted grey market, according to market estimates cited in the disclosure.

Ashishkumar Chauhan had earlier said that once the no objection certificate is formally received, NSE would begin preparations for filing the draft red herring prospectus. He had indicated that filing the DRHP could take up to four months from the receipt of the NOC, followed by regulatory review.

The IPO itself is expected to reach the market several months after the completion of the regulatory process, marking a landmark moment for India’s largest stock exchange after years of regulatory and legal challenges.