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.

The Securities and Exchange Board of India (SEBI) is at a "very advanced stage" of issuing the no-objection certificate (NoC) for the National Stock Exchange's initial public offering. SEBI Chairman Tuhin Kanta Pandey indicated significant progress in the approval process, stating that "it may be done within this month," referring to January 2026, though he did not commit to a definitive timeline.

IPO Timeline and Regulatory Journey

The NSE's path to its public offering has been marked by significant delays spanning nearly a decade. The exchange first filed its draft red herring prospectus in December 2016, initiating what would become a prolonged approval process. However, the IPO plan was subsequently put on hold amid serious allegations concerning unfair access to the exchange's algorithmic trading platform, known as the co-location controversy.

Regulatory Settlement and Compliance Measures

In October 2024, the NSE reached a significant milestone by settling its Trading Access Point architecture and network connectivity case. The exchange paid a substantial penalty of ₹643.00 crore to resolve this regulatory matter, demonstrating its commitment to addressing past compliance issues.

Chairman Pandey noted that the NSE has implemented several corrective measures to address regulatory concerns. These comprehensive reforms include changes in senior management, board restructuring, and strengthening of compliance frameworks. The exchange has also worked systematically to resolve past regulatory issues that had hindered the IPO approval process.

Market Implications

The potential approval of NSE's IPO represents a significant development for India's capital markets. The exchange has been seeking this approval for several years, with the process gaining renewed momentum following the governance reforms and regulatory settlements implemented in 2024. The advanced stage of the approval process suggests that one of India's premier stock exchanges may soon join the public markets, subject to final regulatory clearance.