Securities and Exchange Board of India (Sebi) chairman Tuhin Kanta Pandey has indicated that the no-objection certificate (NoC) for National Stock Exchange's (NSE) initial public offering would likely be granted by the end of January. The announcement was made at a market convention in Chennai, reviving investor interest in what could become one of India's largest public offerings.

Unlisted Share Price Revival

Following the Sebi chairman's comments, NSE's unlisted share prices have shown immediate response in the unofficial market:

Narinder Wadhwa, founder of SKI Capital Services, confirmed the current pricing at ₹2,050.00 per share, noting that "activity on the counter is likely to increase with the NoC expected by this month end." Ashish Nanda, president and chief business development officer at Kotak Securities, observed that "the unlisted space, which had turned silent for the past many months, will probably see some revival."

Regulatory Timeline and Process

The NoC has been pending since March when Sebi permitted NSE to expedite share transfer processes between investors. A Sebi NoC is mandatory for every market infrastructure institution seeking to list publicly. After receiving the certificate, NSE must prepare its offer document and submit it to Sebi for final approval.

According to industry sources, if clearance is received by month-end, NSE shares could be listed by August-September. An investment banker indicated that "formal presentations by February" would be followed by draft document filing within two months.

Shareholding Pattern Changes

NSE's retail investor base has expanded significantly in recent quarters:

Market Valuation and Competitive Position

The potential IPO could value NSE at ₹7.00 trillion, representing a premium to its current valuation of ₹5.07 trillion. This positions NSE significantly ahead of its competitor BSE, which holds a market capitalization of ₹1.09 trillion.

Historical Context and Provisions

NSE's IPO has been delayed for nearly nine years due to regulatory investigations into alleged malfeasance by former management. The exchange recognized a provision of ₹1,297.00 crore in the September quarter for settlement applications filed with Sebi regarding colocation and dark fiber matters.

The development is expected to have positive spillover effects on other capital market-related themes in the unlisted space, including agricultural derivatives bourse NCDEX and MSEI, both preparing for equity segment launches.

SEBI Chairman Tuhin Kanta Pandey has provided the clearest indication yet regarding the National Stock Exchange's initial public offering timeline, suggesting that regulatory approval may be imminent. Speaking to ET NOW, Pandey stated that the no-objection certificate for NSE's IPO "can be expected from SEBI very soon."

Regulatory Progress on NSE Listing

The chairman's comments represent a significant development in NSE's journey toward becoming a publicly listed entity. The Securities and Exchange Board of India has been reviewing the exchange's IPO proposal, and Pandey's statement suggests that the regulatory evaluation process is nearing completion.

Significance for Indian Capital Markets

The potential approval of NSE's IPO would mark a historic moment for India's financial markets. As one of the country's premier stock exchanges, NSE's public listing has been anticipated by market participants and investors alike. The exchange's IPO would allow public investors to own shares in the institution that facilitates trading for millions of market participants.

Current Status

Pandey's statement to ET NOW provides the most definitive timeline indication from SEBI regarding the NSE IPO approval process. The regulator's readiness to issue the no-objection certificate suggests that key regulatory hurdles may have been addressed, paving the way for the exchange's public offering to proceed.