NSE IPO: Key Things To Know About National Stock Exchange’s Public Issue

The National Stock Exchange of India (NSE) is now at last inching closer to going public after much delay. This followed the issuance of the observation letter from SEBI on the draft prospectus of NSE in September 4, 2026. NSE had first applied for its IPO way back in December 2016.

For investors who have followed NSE’s listing plans over the years, the latest approval is an important step towards the exchange finally becoming a listed company.

The Regulatory Dispute Behind the Delay

The biggest hurdle was the co location matter. It related to allegations that some brokers had received preferential access to NSE’s trading servers during 2015 and 2016. A related issue involved dark fibre connections, which allowed some trading members to access market data through dedicated network links.

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The matters went through several legal and regulatory stages, including proceedings before the Securities Appellate Tribunal and the Supreme Court.

According to Business Standard, NSE submitted a settlement application to SEBI in June 2025 and offered ₹1,388 crore to settle the two matters. SEBI Chairman Tuhin Kanta Pandey later confirmed the settlement in principle. The Supreme Court disposed of the pending appeals on September 3, 2026, following NSE’s final settlement payment of ₹1,491.21 crore. SEBI issued its observation letter the next day.

What the NSE IPO Will Offer?

NSE filed its Draft Red Herring Prospectus with SEBI on June 17, 2026. The IPO will be entirely an Offer for Sale (OFS) of up to 14.89 crore equity shares with a face value of ₹1 each. The shares represent around 6% of NSE’s paid up capital.
There is no fresh issue. As a result, NSE will not receive any money from the IPO. The proceeds will go to the shareholders selling their shares.

State Bank of India is the largest selling shareholder, with up to 2.48 crore shares on offer. Other sellers include Canada Pension Plan Investment Board, MS Strategic (Mauritius), Aranda Investments (Mauritius), Bank of Baroda and Stock Holding Corporation of India.

The price band, lot size and final issue dates were yet to be announced as of September 7, 2026.

NSE Will List on BSE

NSE shares will be listed on BSE Limited, rather than on NSE itself. The DRHP has been filed with SEBI and BSE, with BSE designated as the stock exchange for the issue.

This will make NSE an unusual listed company. Once the listing takes place, investors will trade NSE shares on its main domestic rival, BSE.

A Profitable Business With a Large Market Share

NSE enters the IPO with a sizeable earnings base. According to NSE’s official financial disclosures, consolidated total income stood at ₹18,713 crore in FY26, compared with ₹19,177 crore in FY25. Consolidated profit after tax was ₹10,302 crore, while earnings per share stood at ₹41.62.

Profit was lower than the previous year, partly because NSE recognised a provision of ₹1,391.21 crore related to the settlement of the co location and dark fibre matters.

The June 2026 quarter showed some improvement. NSE reported consolidated net profit of ₹3,120 crore in Q1 FY27, compared with ₹2,923 crore a year earlier. Revenue from operations increased to ₹4,560 crore from ₹4,032 crore.

NSE also has a strong position in India's trading market. Its DRHP shows that the exchange accounted for 92.99% of the equity cash market by turnover, 99.79% of equity futures and 74.71% of equity options by premium value in FY26.

As of March 2026, NSE had 1,325 trading members and 129.09 million unique registered investors. The number of unique investors grew at a CAGR of 26.93% between March 2020 and March 2026.

What Investors Need to Watch

NSE’s strong market position is an important part of the IPO story, but there are risks that investors need to keep in mind.
The DRHP shows that the exchange depends significantly on a relatively small group of trading members. Its top ten trading members accounted for 46.78% of operating revenue in FY26. A change in their trading activity could therefore affect NSE’s earnings.

The exchange also remains closely linked to derivatives activity, particularly options. Changes in regulations or a sustained decline in trading volumes could affect transaction revenue.

NSE’s regulatory history is another factor investors should consider. The DRHP also records operational risks. In February 2021, a storage network issue halted trading for more than five hours. The matter later resulted in a regulatory settlement and a penalty of ₹49.77 crore for NSE and its clearing subsidiary.

About NSE

The National Stock Exchange of India is a major market infrastructure institution providing trading services across equities, derivatives and other financial market segments. Its wider operations include clearing, index services and market data. NSE is also the owner of the Nifty 50 index, one of India’s most widely followed market benchmarks.

Conclusion

NSE’s IPO brings a long pending listing closer to reality after years of regulatory and legal delays. The exchange has a strong market position and a substantial profit base, but its earnings remain linked to trading activity and regulatory changes. Since the issue is entirely an OFS, NSE will not receive fresh capital. The final price band will be crucial in determining how the IPO should be viewed.