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.

Securities and Exchange Board of India (SEBI) chairman Tuhin Kanta Pandey has signaled significant progress in the National Stock Exchange's long-awaited initial public offering, stating that the regulator may issue the No Objection Certificate (NOC) for the NSE IPO "within this month." The remarks were made during the sidelines of an event in Chennai and represent a major development in the much-anticipated public listing.

Current IPO Timeline and Process

NSE CEO Ashish Chauhan had provided a detailed timeline estimate in a September 2025 interview with CNBC TV18, projecting an eight to nine-month period before the exchange could be listed. The process breakdown includes approximately four months for preparing the draft red herring prospectus (DRHP) after receiving the NOC, followed by another four months for SEBI's review and addressing any regulatory queries.

NSE's Current Shareholding Structure

The exchange is already positioned for public listing with a substantial existing shareholder base. NSE currently has approximately 1.72 lakh shareholders and operates without any promoter stake, which demonstrates its institutional readiness for public market participation once regulatory clearances are secured.

Historical Delays and Regulatory Concerns

The IPO process has experienced significant delays since the initial DRHP filing in 2016. NSE has made multiple attempts to secure the NOC, submitting applications once in 2019, twice in 2020, and again in August 2024. Progress has been impeded by various regulatory concerns, including cases related to co-location and dark fiber access issues.

Outstanding Regulatory Matters

Pandey had previously outlined the key areas under discussion between NSE and SEBI in an April 30 statement to Moneycontrol. The regulatory discussions encompass several critical areas that need resolution before the IPO can proceed.

The key discussion points include:

• Governance frameworks and structures
• Technology infrastructure and systems
• Pending litigation matters
• Clearing corporation operations and oversight

The exchange has been actively addressing these regulatory matters as part of its ongoing engagement with SEBI to clear the path for its public listing. Pandey had indicated that resolution of these issues with a clear roadmap would enable the IPO to move forward, setting the stage for the current positive developments in the approval process.