NSE IPO: SEBI Gives In-Principle Approval to Exchange to Float IPO

The capital markets regulator, the Securities and Exchange Board of India (SEBI), has granted in-principle approval to the NSE’s settlement application in the long-running unfair market access case, marking a crucial breakthrough for the exchanges’ much-awaited listing plans. This was stated by the SEBI Chairman Tuhin Kanta Pandey on Thursday. 

He stated that the government has cleared a 2.5% stake dilution for NSE, with a formal notification expected shortly, following which the exchange will proceed with appointing bankers and legal advisers after receiving SEBI’s no-objection certificate (NOC).

What This Approval Indicates?

This initial approval represents a significant milestone for NSE, the world’s largest derivatives exchange, which has been seeking to go public since 2016. 

NSE IPO was repeatedly stalled due to unresolved legal matters and governance concerns, most notably the unfair market access case. 

As per market experts, SEBI’s move gives a strong signal that legacy regulatory issues surrounding NSE are close to resolution, potentially paving the way for the exchange to formally revive IPO preparations once final settlement approval and procedural formalities are completed.

The development also aligns with broader regulatory easing introduced last year, when SEBI lowered the minimum public float requirement for large companies. Under the revised norms, firms valued at over ₹5 trillion post-listing are allowed to dilute just 2.5% of their paid-up capital, down from the earlier 5%, a change that has supported listing plans of major entities such as NSE and Reliance Industries’ telecom arm, Jio. 

Also Read: Executive Centre India Secures SEBI Nod For ₹2,600 Crore IPO

Conclusion

With both regulatory and government approvals now progressing, attention will turn to execution, bringing NSE closer to one of India’s most closely tracked public market debuts.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in securities market are subject to market risks, read all the related documents carefully before investing.