SEBI Chairman Tuhin Kanta Pandey has indicated that the regulator is at an "advanced stage" of issuing the NOC for NSE's IPO, potentially within the current month. This development has sparked analyst expectations of a significant re-rating for BSE, as the listing of India's largest stock exchange could serve as a pivotal catalyst for revaluing market positioning and investor interest across both platforms.

Regulatory Progress and Timeline

Speaking to news agency ANI, Pandey confirmed the advanced status of NSE's IPO approval process, though he refrained from providing a definite timeline. NSE has been seeking regulatory clearance for several years following governance-related lapses and the co-location controversy that attracted regulatory scrutiny.

The exchange's IPO journey has been lengthy, with NSE first filing its draft red herring prospectus in December 2016. However, the process stalled due to allegations surrounding preferential access to its algorithmic trading systems. In August 2024, NSE reapplied for a fresh NOC, and in October, settled the Trading Access Point case by paying a penalty of ₹643.00 crore.

Analyst Expectations for BSE Re-rating

Market experts anticipate that NSE's listing could prompt a reassessment of BSE's valuation and market visibility. Saurabh Jain, Head of Fundamental Research at SMC Global Securities, expects BSE to witness a "meaningful re-rating" post the NSE IPO, aided by peer benchmarking and improved sector visibility.

Jain noted that NSE's public market valuation could help narrow the valuation gap with BSE, while BSE may benefit from a scarcity premium as the only currently listed exchange.

Strategic Positioning and Growth Drivers

Sneha Poddar, VP Research, Wealth Management at Motilal Oswal Financial Services, echoed similar views regarding BSE's re-rating potential. She emphasized that since NSE cannot list on its own platform, its mandatory listing on BSE is likely to draw substantial attention, including increased trading volumes and institutional participation.

Both analysts highlighted BSE's improving fundamentals as additional support for the re-rating narrative:

• Growth in derivatives segment
• Expansion in mutual fund distribution services
• Enhanced data services offerings
• Improving traction in SME platforms

Market Dynamics and Future Outlook

While NSE continues to dominate across segments, analysts believe BSE's improving performance in derivatives and SME platforms could further enhance its visibility and relevance. Poddar noted that this positioning could lead to a reassessment of relative valuations between the two exchanges, laying the groundwork for a potential re-rating.

The evolution of BSE's market position and the broader impact of NSE's eventual listing will be closely monitored by market participants in the coming weeks, as the approval process reaches its final stages.

The National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) will remain completely closed on January 15, 2026, due to municipal corporation elections in Maharashtra. This announcement represents a significant modification from the exchanges' earlier position.

Trading Holiday Modification

The NSE issued a circular stating a "partial modification" to its earlier announcement. Initially, the exchange had planned to keep trading open on January 15 while observing only a settlement holiday. However, the updated notification declares January 15, 2026, as a complete trading holiday in the Capital Market (CM) Segment.

Maharashtra Municipal Elections

The Maharashtra government declared January 15, 2026, a public holiday under the Negotiable Instruments Act to facilitate local body elections across 29 municipal corporations. The elections include major civic bodies such as Mumbai City and Mumbai Suburban districts governed by the Brihanmumbai Municipal Corporation (BMC).

The notification was issued under Section 25 of the Negotiable Instruments Act, 1881, using powers delegated to the state government by the Ministry of Home Affairs since 1968. The Brihanmumbai Municipal Corporation confirmed that the holiday applies across Mumbai, including the city and eastern and western suburbs.

Impact on Financial Services

The public holiday declaration affects multiple sectors beyond stock markets:

• Government and semi-government offices will remain closed
• Public sector units will suspend operations
• Banks and financial institutions will be shut
• Other commercial establishments will observe the holiday

The government order also extends to voters registered in Mumbai but working outside the city, allowing them to participate in the electoral process. Vote counting is scheduled for January 16, 2026.

Market Holiday Calendar 2026

The January 15 closure is part of the stock markets' annual holiday schedule for 2026. Markets will remain closed for a total of 16 holidays throughout the year, with four holidays falling on weekends when markets are typically closed anyway.

March will see the highest number of market closures with three trading days affected by festivals and religious observances. The months of February, July, and August will have no effective market holidays as the scheduled national holidays coincide with weekends.

Historical Context

This marks a continuation of the practice observed during previous Maharashtra civic elections. Stock markets were similarly closed during the last municipal corporation elections held in 2017, establishing a precedent for suspending trading activities during major state electoral processes.