NSE IPO: SEBI May Issue NOC This Month, Says Chairman Tuhin Kanta Pandey

The Securities and Exchange Board of India (SEBI) is expected to give its approval for the National Stock Exchange's (NSE) long-delayed initial public offering (IPO) within January 2026, according to SEBI chairman Tuhin Kanta Pandey.  

The move follows several corrective actions by NSE on governance and compliance matters. 

NSE’s IPO Gets Closer to SEBI Clearance 

SEBI chairman Tuhin Kanta Pandey announced that the National Stock Exchange is in the final stages of receiving a no-objection certificate for its IPO proposal.  

“I think we are at a very advanced stage of issuing the NOC for the NSE IPO, possibly within this month,” Pandey stated with news agency ANI. 

The exchange had initially submitted its draft red herring prospectus in December 2016 but faced delays due to investigations linked to the co-location controversy and allegations of preferential access to its algo trading platform. 

In August 2024, NSE resubmitted its application after taking corrective steps. These included management restructuring, board realignment, improved compliance mechanisms, and settlement of pending regulatory cases. 

Settlement of Regulatory Cases and Penalties 

One of the major developments that revived approval discussions was NSE’s decision to settle the Trading Access Point-related case in October 2024.  

The exchange paid ₹643 crore to resolve allegations connected to high-frequency traders gaining preferential access to its systems. 

Following this, SEBI acknowledged that several long-standing concerns were addressed. Changes in top management and governance practices were among the actions cited by Pandey. 

Read More: SEBI Lays Down Uniform Compliance Reporting Framework for SIFs!  

SEBI’s Action on Investor Safety and Misinformation 

Beyond the NSE IPO, SEBI has intensified its monitoring of digital platforms for securities market violations. Its AI-powered tool, Sudarshan, has flagged over 1,00,000 instances of misleading content for takedown.  

The regulator is also investing in multilingual investor education drives and tools like SebiCheck, launched on October 1, 2025, enabling quick verification of market-related payment credentials. 

Coordination with law enforcement agencies has been scaled up to combat fraudulent entities misusing the regulator’s name and logo, with nodal officers designated across several states. 

Conclusion 

SEBI is nearing completion of its regulatory due diligence for NSE’s IPO, pending since 2016. Improved compliance and the resolution of past cases have played key roles in reviving the approval process. SEBI's broader digital vigilance and investor protection initiatives continue to support its core mandate of maintaining market integrity. 

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