The National Stock Exchange (NSE) is on the edge of its seat, waiting for the green light from the Securities and Exchange Board of India (SEBI) to kickstart its long-anticipated initial public offering (IPO). Ashish Kumar Chauhan, the MD & CEO of NSE, conveyed the anticipation during a recent interaction with reporters.
Also Read | PepsiCo to Invest INR 1,266 Cr in New Flavor Manufacturing Facility in Ujjain
A Decade-long Wait
Chauhan highlighted the uncertainty surrounding the timeline, citing the case of the Bombay Stock Exchange (BSE) which endured a nine-year wait for SEBI’s nod for its IPO. The prolonged delay in NSE’s IPO approval stems from unresolved regulatory issues and ongoing investigations.
The National Stock Exchange (NSE) had previously filed a DRHP in late 2016 but it failed to get SEBI’s nod due to lingering regulatory concerns. Now, NSE is in an advanced stage, when the new DRHP application will be submitted to SEBI after necessary approvals.
SEBI’s Checklist and Preconditions
Reports indicate that SEBI has issued a checklist of pre-conditions for NSE to fulfil before it can proceed with its IPO application. This checklist includes a mandate to strengthen corporate governance standards within the exchange and resolve all pending legal matters.
Expansion Plans and Commodity Derivatives
In contrast to the original assumptions, the NSE has clarified that it won’t acquire the National Commodities and Derivatives Exchange (NCDEX). Instead, it privately wants to take the route of widening its portfolio of products as new commodity derivatives contracts. At the moment NSE has 28 products in the commodity derivatives segment and recently started listing of 13 new commodity contracts.
Market Readiness and Regulatory Compliance
Despite the anticipation, NSE remains under scrutiny to ensure glitch-free operations, strong technical infrastructure and adherence to corporate governance standards. SEBI’s direction to remain operational for at least a year without any major irregularities before reapplying underlines the regulator’s cautious approach.
Also Read | India Incorporates 1.68 Lac+ Companies in FY24, Highest In February: Shows MCA Data
Challenges Faced and Financial Performance
Over the years the NSE has faced various challenges, including allegations of misconduct and technical failures. However, its financial performance is still strong reporting 8% growth in consolidated net profit for the quarter ending December 2023
