The chairman of the Securities and Exchange Board of India (SEBI), Tuhin Kanta Pandey, has revealed that the market regulator is collaborating with the National Stock Exchange (NSE) to address the ongoing delays surrounding the exchange’s initial public offering (IPO). This cooperation could potentially pave the way for NSE’s long-awaited public listing.

A Decade-Long Wait for NSE’s IPO

The NSE’s IPO has been anticipated as one of India’s most significant market events, with nearly ten years of efforts to secure regulatory approval. Pandey recently emphasized that SEBI’s hesitation in approving the IPO should not be misconstrued as reluctance. In an interview with Fortune India, he pointed out that, “The Bombay Stock Exchange (BSE) is already listed, so there’s no justification for the NSE to remain unlisted.”

Governance Concerns Hindering Progress

Pandey highlighted that the core issue delaying NSE’s IPO is related to governance. He stated, “We need a clearer understanding of the governance structure and its future evolution.” He reassured stakeholders that SEBI’s commitment is to protect public interest over commercial gains, emphasizing the regulator’s role in ensuring fairness in the market.

• Key Points:
  • SEBI and NSE are working together to resolve IPO delays.
  • Governance structure clarity is crucial for moving forward.
  • SEBI prioritizes public interest over commercial motives.

A Long Road to Regulatory Approval

The NSE first submitted its IPO application back in 2016, but regulatory concerns have led to significant setbacks. In 2019, SEBI returned NSE’s application due to issues related to the co-location scandal, insisting that these matters must be resolved before proceeding. NSE has since sought approval multiple times, including applications made in 2019, 2020, and again in 2024.

In October 2024, the NSE paid a hefty penalty of ₹643 crore to settle part of the co-location controversy. However, legal proceedings related to this scandal are still ongoing in the Supreme Court, which continues to impact SEBI’s willingness to approve the IPO.

NSE’s Continued Pursuit of a Listing

Despite these challenges, the NSE has resumed efforts to obtain a “no-objection” certificate for its listing. Recent reports from NDTV Profit indicated that the exchange might face a delay of up to two years before launching its IPO.

As the situation unfolds, both SEBI and NSE are working diligently to navigate the complexities of regulatory compliance and governance clarity, aiming to bring this significant IPO to fruition. With the stakes high, industry watchers are keenly observing how this will impact India’s financial landscape.