NSE IPO: Applied No Objection Certificate From SEBI

The National Stock Exchange (NSE) has renewed its efforts to go public by filing for a no-objection certificate (NOC) with the Securities and Exchange Board of India (Sebi) for its long-awaited initial public offering (IPO).

This move comes after Sebi informed the Delhi High Court earlier this month that NSE had not submitted any new request for NOC. The clarification was in response to a writ petition filed in the court to expedite the bourse’s IPO.

NSE’s IPO plans have been in limbo since 2016, when it first filed the draft red-herring prospectus (DRHP). Sebi had returned to the DRHP in 2019, advising the exchange to make fresh filings after resolving certain issues.

Despite the uncertainties surrounding the IPO, foreign investors have remained active in the Indian market, with net sales of ₹3,500 crore in June and July. However, the trading price of NSE shares in the unlisted market has fluctuated, cooling from ₹6,500 levels in May to ₹6,200 apiece in recent months.

NSE’s IPO has faced several hurdles, including Sebi’s observations on technology, governance, surveillance, and trading issues. The exchange has also been required to address lapses in its role as a first-level regulator, inspection, and off-site monitoring.

A petition filed by People Activism Forum to expedite the IPO is scheduled to be heard in December. In the meantime, NSE has announced a bonus issuance, pending Sebi’s approval.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.