The National Stock Exchange of India's initial public offering appears to be nearing final approval after years of regulatory delays, with market regulator SEBI indicating clearance could come as early as this month. The development has generated renewed optimism in the financial markets as one of India's most anticipated listings moves closer to reality.

SEBI Signals Imminent Approval

Securities and Exchange Board of India chairman Tuhin Kanta Pandey confirmed that the regulator is at a "very advanced stage" of issuing a no-objection certificate for NSE's listing. While stopping short of providing a firm date, Pandey indicated the process could be completed within January, raising expectations that the long-standing regulatory overhang may finally be resolved.

The timing coincided with NSE Managing Director and CEO Ashish Kumar Chauhan's visit to Tirupati on January 11, 2025, where he offered prayers at the Tirumala temple for the exchange, its employees, members, listed companies and investors. Chauhan described the regulator's positive signals as feeling "like a divine sign from the Almighty."

Journey from 2016 to Resolution

The NSE's path to public listing has been marked by significant challenges since the exchange first filed its draft prospectus in December 2016. The IPO plans were subsequently stalled due to governance concerns and the co-location episode, which involved allegations that certain brokers received preferential access to trading systems.

Corrective Measures and Compliance

Momentum for the IPO resumed in 2024 after NSE reapplied for approval and settled the Trading Access Point and network connectivity case. The exchange paid a penalty of ₹643.00 crore as part of the settlement process.

Since then, NSE has implemented comprehensive corrective measures to address regulatory concerns:

• Changes in senior leadership positions
• Board restructuring initiatives
• Implementation of tighter compliance systems
• Enhanced governance frameworks

Market and Political Response

The potential IPO has drawn attention from political leaders, with Andhra Pradesh IT minister Nara Lokesh welcoming Chauhan's visit to Tirupati and describing the upcoming IPO as potentially "historic." The positive reception reflects the significance of NSE's public listing for India's capital markets.

Path Forward

With most legacy concerns now addressed through settlements and governance reforms, the NSE's extended wait to go public appears to be nearing its conclusion. The exchange's successful resolution of regulatory issues and implementation of corrective measures have positioned it for potential market debut after nearly a decade of preparation and remediation efforts.

Securities and Exchange Board of India Chairman Tuhin Kanta Pandey has provided the strongest indication yet that the National Stock Exchange's long-awaited initial public offering may finally receive regulatory approval, stating that Sebi is at an advanced stage of issuing the necessary clearance.

NSE IPO Approval Timeline

Speaking in an interaction with news agency ANI, Pandey expressed optimism about the timeline for NSE's public listing approval. "I think we are at a very advanced stage of issuing the NOC for the NSE IPO, possibly within this month," he said, while refraining from providing a definitive timeline.

The NSE's journey toward a public listing has been marked by significant delays and regulatory hurdles:

Regulatory Settlements and Reforms

The exchange's IPO process was significantly delayed due to governance lapses and the co-location controversy that came under Sebi's scrutiny. The co-location issue involved allegations of preferential access to NSE's algorithmic trading platform, where certain high-frequency traders were found to be exploiting system access.

In October 2024, NSE settled the Trading Access Point architecture and network connectivity case by paying a substantial penalty of ₹643.00 crore. This settlement addressed alleged deficiencies in dealing with instances where certain traders exploited system access advantages.

Pandey noted that NSE has undertaken several corrective measures since the controversies emerged:

• Changes in senior management
• Restructuring of the board
• Strengthening compliance frameworks
• Settling past regulatory matters

Enhanced Digital Surveillance Initiatives

Beyond the NSE IPO developments, Pandey highlighted Sebi's intensified efforts to monitor digital platforms for securities market violations. The regulator has been actively monitoring social media and has executed more than 100,000 takedowns in recent months.

"One of the ways that we are doing it is through looking at social media, and wherever we find transgression, we are asking the platforms to take it down," Pandey explained.

AI-Powered Market Monitoring

A key component of Sebi's digital enforcement strategy is AI Sudarshan, an artificial intelligence-based tool developed specifically to identify misleading or illegal market-related content online. This system enables the regulator to detect violations and take prompt action against fraudulent activities.

To combat fraud cases involving misuse of Sebi's name and logo, the regulator has intensified coordination with law enforcement agencies across states, seeking appointment of nodal officers and conducting training programmes.

Investor Protection Measures

Sebi has launched SebiCheck, a verification tool available through the regulator's mobile application and website since October 1, 2025. This tool allows investors to confirm within 30 seconds whether a bank account, UPI handle, or QR code is authorized for securities market transactions.

"If money is sent to fraudulent accounts, investors get no protection. Awareness is critical," Pandey emphasized, urging investors to use SebiCheck before transferring funds.

Regarding market regulation, Pandey indicated no immediate changes are planned, particularly in the derivatives segment. The regulator is currently studying data from measures implemented in October 2024, May 2025, and December 2025 before deciding on future actions.