No More Roadblocks: SEBI Clears the Path for NSE's IPO

It's official: the National Stock Exchange (NSE) has the green light for its long-awaited IPO. SEBI Chairman Tuhin Kanta Pandey confirmed on Friday that there are no remaining regulatory barriers. Speaking at the Federation of Editors' CFO Awards, he made it clear NSE can finally move forward.

"There is no obstacle that will remain in case of NSE IPO," Pandey said, according to The Economic Times and PTI reports. The final primary concern? NSE's ownership of its clearing corporation. That's been resolved, too.

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From Gridlock to Go-Ahead

One of the trickiest parts of NSE's IPO journey was its link to the clearing corporation. While other countries often allow broker-owned clearing houses, India follows a different playbook; clearing corporations here are subsidiaries. Pandey said SEBI is fine with NSE's structure and won't let it hold up the IPO.

His reassurance ends months of speculation over whether NSE would be forced to spin off the unit to meet regulatory norms.

Settlements Nearly Wrapped Up

There's also progress on the legal front. According to Pandey, the remaining compliance issues are being resolved. Some payments still need to be made, and a few legal cases need to be withdrawn. Although no official amount was mentioned, sources suggest it's around ₹1,000 crore. NSE already paid ₹640 crore to SEBI in October 2024 as part of earlier settlements.

This mostly puts the 2015 co-location scandal to bed. That's the one where brokers allegedly got unfair access to NSE servers. While SEBI okayed a confidential, consent-based settlement process years ago, the Supreme Court's nod is still pending. Pandey's remarks suggest it's not far off.

Diwali Launch? Maybe. Maybe Not

Even with the green light, there's no official IPO date yet. When asked if NSE could list before Diwali (around mid-November), Pandey stayed noncommittal.

However, according to Financial Express, insiders are whispering that a final no-objection certificate (NOC) could be obtained by December 2025. That would pave the way for NSE to lock in its IPO paperwork and hit the markets soon after.

Substantial Numbers Boost IPO Appeal

NSE's financials are making a strong case. In FY25, it posted a 47% jump in net profit, hitting ₹12,188 crore. Revenue also rose 17% to ₹19,177 crore. The Q4 numbers were solid, too, with net profit up 7% year-over-year to ₹2,650 crore, despite a 13% dip in income to ₹4,397 crore.

Investor interest has ballooned. Since March, the number of shareholders in unlisted NSE shares more than doubled, from under 40,000 to over 100,000.

SEBI's Bigger Picture: Reform and Growth

Pandey stressed that this move aligns with SEBI's broader mission: support market growth while protecting investors. He mentioned upcoming reforms, such as improving transparency around trading and clearing fees, and stated that a working group is examining the possibility of unbundling those charges.

He also clarified SEBI's stance on T+0 (same-day) settlements. It's not mandatory and remains optional, especially since it's more complex for foreign investors to manage. And the big goal? SEBI aims to increase the number of Indian market participants from 130 million today to 400 million within five years. That'll require innovative policies, tax adjustments, and enhanced global competitiveness.

NSE's IPO won't just impact the exchange; it could shake up the entire financial ecosystem. Rival BSE, which was listed back in 2017, may feel the pressure. Central Depository Services Ltd (CDSL) could also see new interest, given its role in the broader market infrastructure.

With India's market cap topping $5 trillion, NSE ranks 5th globally in derivatives and 3rd in equity volume. A public listing would only further cement its status.

Final Thoughts: NSE's IPO Era Begins

It has been nearly a decade since NSE first announced its plan to go public back in 2016. Since then, it's been a rollercoaster of draft filings, governance debates, and regulatory speed bumps.

But now, with SEBI's final "no obstacles" declaration, NSE is on the brink of one of India's biggest IPOs ever. Whether it launches before Diwali or waits until early 2026, one thing is clear: the finish line is finally in sight.