Sebi Clears NSE IPO Path With No Objection Certificate After Decade-Long Wait

Regulatory Approval Marks Key Milestone for India’s Largest Stock Exchange​

Capital market regulator Securities and Exchange Board of India has granted a no objection certificate to the National Stock Exchange, allowing the country’s largest bourse to move forward with its long awaited initial public offering. A senior exchange official confirmed the development on Friday, bringing an end to nearly a decade of uncertainty surrounding the listing.

IPO Plans Revived After Governance and Co Location Setback​

NSE’s listing plans have remained on hold since 2016, when it first filed draft offer documents to raise around Rs 10,000 crore through an offer for sale by existing shareholders. The regulator had withheld approval at the time due to governance related issues linked to the co location case, in which certain brokers were accused of receiving preferential access to the exchange’s trading systems.

Over the years, the exchange approached the regulator multiple times seeking clearance, while addressing the concerns raised during the regulatory review.

Leadership Calls Approval a Turning Point​

Reacting to the clearance, NSE Chairperson Srinivas Injeti described the approval as a defining moment in the exchange’s journey.

With the regulator’s approval, the exchange is entering a new phase of value creation for its stakeholders, he said, adding that the move strengthens confidence in NSE’s role as a core institution of the Indian economy and capital markets ecosystem.

Settlement Approval Paved the Way​

Earlier this month, Sebi Chairperson Tuhin Kanta Pandey had stated that the regulator had granted in principle approval to NSE’s settlement application in the unfair market access case. This development was widely seen as a crucial step toward clearing the IPO proposal.

NSE had filed its settlement plea in June 2025. After years of litigation, the exchange offered to pay Rs 1,388 crore in 2025 to settle the charges and restart the listing process.

Timeline for DRHP and IPO​

NSE Managing Director and Chief Executive Ashish Kumar Chauhan had earlier indicated that once the no objection certificate was received, the exchange would begin preparations to file its draft red herring prospectus.

He had said that filing the DRHP could take up to four months after receiving the clearance, followed by regulatory review. The IPO itself could reach the market around seven to eight months after the no objection certificate.

One of India’s Largest Expected Listings​

The proposed NSE IPO is expected to be among the largest in India’s capital markets. The exchange has around 1.77 lakh shareholders and is valued at over Rs 5 lakh crore in the unlisted grey market.

In March 2025, the market regulator had also set up an internal committee to examine NSE’s listing proposal, underscoring the significance of the process.

With regulatory clearance now in place, NSE’s long delayed listing plans have formally moved into execution mode, marking a major development for India’s capital market landscape.