India’s largest stock exchange could make its much-awaited market debut after nearly a decade of regulatory delays
NEW DELHI: The National Stock Exchange (NSE) has cleared a major hurdle on its long-awaited journey to the stock market, with the Securities and Exchange Board of India (SEBI) issuing its final observations for the exchange’s proposed initial public offering (IPO) on Friday. The development paves the way for what could become one of the biggest public issues in Indian capital-market history.
The proposed NSE IPO is expected to be worth around ₹30,000 crore, according to reports based on the exchange’s draft offer documents. At an indicative valuation of around ₹5 lakh crore, the issue could potentially overtake Hyundai Motor India’s ₹27,870-crore IPO of 2024 and set a new benchmark for India’s primary market. The final size and valuation, however, will depend on the price band eventually announced by NSE.
Existing Investors To Sell Shares
Unlike a conventional IPO in which a company raises fresh capital, NSE’s proposed offering will be entirely an Offer for Sale (OFS). Under the draft plan, existing shareholders will offer up to 14.89 crore shares, equivalent to nearly 6% of the exchange’s paid-up capital. NSE itself will not receive proceeds from the share sale.
Among the major shareholders looking to sell shares are State Bank of India, which could offer up to about 2.48 crore shares, and MS Strategic (Mauritius) Ltd, with an offer of around 1.60 crore shares. Other selling shareholders include Canada Pension Plan Investment Board, Aranda Investments, Bank of Baroda and Stock Holding Corporation of India.
A Decade-Long Wait Nears Its End
For NSE, the regulatory clearance marks a dramatic turning point. The exchange’s plans to go public have been in limbo for almost a decade, with regulatory concerns surrounding its co-location and dark-fibre facilities becoming a significant obstacle to its listing plans.
NSE had filed its latest Draft Red Herring Prospectus (DRHP) with SEBI in June 2026. The regulator’s observation letter now allows the exchange to proceed with the next stages of the IPO process, subject to the remaining regulatory and procedural requirements.
The development comes shortly after the resolution of a long-running legal dispute involving SEBI and NSE. The Supreme Court’s recent disposal of SEBI’s case relating to alleged preferential access to NSE’s trading infrastructure removed another major cloud hanging over the proposed listing.
Market Debut In Sight
Market sources indicate that NSE could move quickly towards the launch, with reports suggesting that the exchange is targeting a listing in the week of September 21, although the precise timetable remains subject to formal announcements and completion of regulatory steps.
The proposed listing is expected to attract intense attention from institutional as well as retail investors. NSE is India’s dominant equity-derivatives exchange and operates the benchmark Nifty 50 index, making its public debut particularly significant for India’s financial markets.
After years of regulatory hurdles, the NSE IPO now appears closer than ever. If completed at the anticipated scale, the listing could mark not just the arrival of one of India’s most important financial institutions on the public markets, but also a landmark moment for the country’s rapidly expanding IPO ecosystem.