The long-awaited IPO of the National Stock Exchange (NSE) – India’s largest bourse by trading volume – may soon move closer to reality, with the Securities and Exchange Board of India (SEBI) likely to give its nod. Both SEBI and NSE are working actively to iron out pending issues and clear the path for the exchange’s market debut.
SEBI Chairperson Tuhin Kanta Pandey said on Thursday that both parties are in discussions to clear the issues arising for the IPO.
“NSE IPO, I think all I can say is that all the outstanding issues will be resolved, and we will move forward. I can’t give you the timeline, but I think we should be doing it soon,” Pandey said, reported ANI. However, the SEBI chief refrained from giving a specific timeline.
“NSE and SEBI, they are talking, and I think they are resolving the issues. I am very hopeful that this will be cleared and we will move forward,” said Pandey.
There have been some issues that the market’s watchdog has flagged up, like high compensation given to key managerial personnel, technology, and ownership in the clearing corporation.
Also, the co-location case was one of the big blocks in the listings way, raising concerns around governance. However, SEBI lately disposed of the cases against NSE’s former officials in the co-location case.
NSE filed the draft red herring prospectus with the SBI in September 2016, and since then, it has not been cleared. The exchange wanted to raise a sum of around Rs 10,000 crore from the public.
The Bombay Stock Exchange, which is now BSE, went public in 2017 and became India’s first listed stock exchange. It is the closest rival to the NSE.
SEBI has been closely tracking developments related to the NSE IPO and regulations in the capital markets.
Adding to that, recently, according to media reports, the NSE blamed SEBI for favouring BSE as the regulator curbed F&O norms.