SEBI Chairman Tuhin Kanta Pandey has confirmed that the market regulator is actively working with the National Stock Exchange (NSE) to resolve long-standing issues that have delayed the exchange's much-anticipated Initial Public Offering (IPO). This development marks a significant step forward in a saga that has stretched for nearly a decade.

Speaking at a recent industry event, Pandey acknowledged that the NSE's IPO has faced regulatory challenges primarily around governance issues. He stated, “We are working with NSE to resolve the issues and bring clarity around governance structures.”

Background of the NSE IPO Delay

The NSE first filed for an IPO in 2016, but the plan has been consistently pushed back due to regulatory red flags, particularly around the co-location case. This case involved allegations that certain brokers had unfair access to NSE's trading systems, potentially giving them an advantage.

In 2019, SEBI returned NSE’s listing documents, insisting that the co-location issue needed to be resolved first. Since then, NSE has sought clearance multiple times—in 2019, twice in 2020, and once again in 2024.

Although the NSE paid a penalty of ₹643 crore in October 2024 to settle one chapter of the co-location scam, related legal proceedings are still pending in the Supreme Court. SEBI remains firm that until all legal matters are settled, giving a green signal to the IPO would be premature.

Key Issues: Governance and Public Interest

According to Pandey, “The main issue is governance and how it is going to evolve.” He stressed the importance of ensuring that commercial interests do not outweigh public interest in the financial markets.

He further stated, “BSE is already listed, so there’s no reason why NSE cannot be listed as well.” However, he made it clear that the delay is not just procedural, but deeply rooted in ensuring transparency, integrity, and public accountability.

NSE Reapplies for No-Objection Certificate

Despite these challenges, the NSE has recently restarted the IPO process by submitting a fresh application for a no-objection certificate. This move signals the exchange’s commitment to eventually go public and provide liquidity to its stakeholders.

Earlier this year, NDTV Profit reported that the IPO could be delayed by up to two more years, depending on how quickly the remaining legal and regulatory hurdles are resolved.

Will the IPO Happen Soon?

While there’s no confirmed timeline, SEBI’s collaborative tone and NSE’s renewed efforts offer some hope. The fact that SEBI is publicly acknowledging its engagement with NSE indicates a possible shift toward resolution. Still, the process is complex, and final clearance depends on legal outcomes as well as internal reforms at NSE.

As India’s largest exchange, the NSE’s IPO is expected to be a landmark event, drawing immense interest from domestic and global investors. But unless the issues of governance and legal transparency are resolved, the wait continues.

For now, market watchers, stakeholders, and potential investors will closely monitor how SEBI and NSE handle the next steps in this long-drawn process.

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