SEBI Chief Confirms No Obstacle — Is NSE IPO Finally Getting the Green Signal?

The National Stock Exchange is close to launching its much-anticipated IPO, as SEBI confirms that all major legal and regulatory hurdles have been resolved or are nearing final settlement. Here’s what that means for India’s largest stock exchange and the financial markets.

SEBI Gives Green Signal to NSE IPO

The chairman of the Securities and Exchange Board of India (SEBI), Tuhin Kanta Pandey, has announced that there is no longer any obstacle to the National Stock Exchange of India Ltd (NSE) going public. Speaking at the FE CFO Awards, he confirmed that SEBI and NSE are working to complete some remaining processes linked to legal settlements.

“There is no obstacle remaining in the case of the NSE,” Pandey stated. He further elaborated that both parties are finalising legal settlements requiring some payments and the withdrawal of specific cases. Despite legal complexities around earlier issues such as the co-location case, the exchange now appears poised for public listing.

Legal Settlements Nearing Completion

According to a news report, SEBI and NSE have agreed upon a final settlement amount reportedly around ₹1,000 crore. This major hurdle has now been cleared, allowing the exchange to proceed with plans to secure a no-objection certificate (NoC) from the regulator.

Once the NoC is granted, the NSE is expected to launch its IPO by December 2025 or possibly earlier, depending on final regulatory approvals. This marks a significant development, considering NSE had first filed its draft red herring prospectus in 2016, only to have it returned in 2019 due to unresolved governance matters.

Understanding the Co-location Case

The co-location case, which had earlier delayed NSE’s listing, involved allegations that some brokers had unfair access to trading systems, giving them a latency advantage over competitors. The matter also led to scrutiny of NSE’s technology infrastructure due to reported system glitches. These concerns largely contributed to SEBI withholding IPO approval at the time.

Now, with these cases either settled or close to being closed, the exchange is ready to move forward. The regulatory focus has shifted from punitive action to structural reform and compliance in the market ecosystem.

Demergers and Clearing Corporations No Longer a Challenge

An important structural issue previously thought to be a roadblock was the separation or demerger of NSE’s clearing corporation. However, Pandey clarified that this is no longer an issue, stating that there are various models globally: in some cases, clearing corporations are independent, while in others, they function as subsidiaries of the stock exchange.

This clarification indicates that regulatory flexibility has been applied to allow different governance structures as long as they ensure transparency, risk management and investor protection.

Read More: SEBI Eases IPO Norms to Boost Startup Listings and Founder Incentives!

Improved Financial Performance of NSE

Financially, NSE continues to post strong results. In the quarter ended March 2025, NSE reported a 7% year-on-year increase in consolidated profit after tax, rising to ₹2,650 crore. While total income fell 13% year-on-year in the quarter to ₹4,397 crore, the annual performance remains robust.

For the financial year ending March 2025, NSE’s net profit surged 47% to ₹12,188 crore, and total income rose 17% to ₹19,177 crore. These results showcase a healthy financial position, which enhances investor interest and builds momentum for a high-profile IPO launch.

Conclusion

SEBI’s confirmation of the removal of all regulatory barriers indicates that the NSE IPO is back on track after years of delay due to legal and governance issues. The finalisation of settlement amounts, resolution of the co-location case, and clarity on organisational structure reflect consolidated steps by SEBI and NSE to move toward a successful listing, potentially by the end of 2025.

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