NSE May File for IPO by July-End

The Initial Public Offering (IPO) of the National Stock Exchange (NSE), which people have been waiting for, may be finally about to happen. According to reports in various media outlets, the Securities and Exchange Board of India (SEBI) is likely to give a No Objection Certificate (NOC) by the end of July 2025. This will make it possible for the listing to happen. If everything goes well, the company could go public in the fourth quarter of FY26.

Settlement in Co-Location, Dark Fibre Cases Paves the Way

It has taken a long time for the NSE IPO to happen because of problems with the co-location and dark fiber cases. These well-known cases from 2015 concerned claims that some brokers had gotten unfair and speedier access to NSE’s systems, which raised worries about the integrity of the market. The investigations that SEBI did as a result had a big effect on the IPO process.

The NSE has submitted a settlement application with SEBI in late June 2025, which is a big step forward in the case. They want to settle the case peacefully. After months of informal talks, the application is now being looked over by the company. The Market Regulation Department of SEBI will soon look into it, and then it will be sent to the High Powered Advisory Committee (HPAC) for a decision.

The panel of full-time members at SEBI will provide the final green clearance. If the deal is granted, SEBI and NSE aim to ask the Supreme Court to drop the lawsuit so that the IPO can go ahead without any more legal problems.

IPO Timeline: DRHP to Listing

Assuming SEBI approves the settlement and the Supreme Court permits case withdrawal, NSE is expected to fast-track the IPO process. The exchange will begin preparing a fresh Draft Red Herring Prospectus (DRHP), a task that could take 4 to 5 months, as it will require auditing all quarterly financials. Following the DRHP submission, SEBI is likely to take another 2 to 3 months to respond with standard queries to merchant bankers, making a Q4 FY26 listing timeline feasible if no further delays occur.

Public Sector Stakeholders Poised to Benefit

A successful NSE listing might provide a lot of benefit to those in the public sector. PSUs own roughly 31% of NSE’s stock, which is worth more than ₹1.7 lakh crore.The listing should help them improve their balance sheets. Institutions like LIC are expected to make a lot of money, which will let them grow their businesses without having to raise more money from investors.

A Milestone in the Making

NSE initially filed its IPO papers in 2016, but the plan was repeatedly deferred due to regulatory headwinds. Notably, the exchange had requested SEBI’s NOC multiple times in November 2019, twice in 2020, and again in August 2024, but the co-location case had kept the matter in limbo.

Now, with a settlement pathway in progress and regulatory green lights expected soon, India’s largest stock exchange appears poised to finally make its public debut. The NSE’s IPO marks the beginning of a new era for the Indian financial markets. Stay tuned as this highly anticipated listing inches closer to reality!

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