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NSE gets Sebi’s IPO approval after decade-long wait

Earlier this month, Sebi Chairman Tuhin Kanta Pandey hinted that the markets regulator may issue a no objection certificate (NOC) to the NSE for its IPO by the end of January 2026.

3 min readNew DelhiUpdated: Jan 30, 2026 09:58 PM IST

NSE's IPO plans had been stalled for more than a decade. (File Photo)

The National Stock Exchange (NSE) on Friday said it has received approval from the Securities and Exchange Board of India (Sebi) for its long-awaited initial public offering (IPO).

The approval ends the NSE’s nearly decade-long wait to file for its IPO. The country’s largest stock exchange had first filed its draft red herring prospectus in 2016.

Earlier this month, Sebi Chairman Tuhin Kanta Pandey hinted that the markets regulator may issue a no objection certificate (NOC) to the NSE for its IPO by the end of January 2026.

Commenting on the development, NSE chairperson Srinivas Injeti said, “We are delighted to receive Sebi approval for our IPO — a significant milestone in our growth journey. With Sebi’s approval, we embark on a new chapter of value creation for all our stakeholders.”

The approval also reinforces confidence in NSE being an integral part of the Indian economy and a beacon of Indian capital markets, he added.

As per regulations, companies are required to obtain an NOC from Sebi before applying for an IPO.

Recently, NSE’s managing director and chief executive officer Ashish Chavan said after getting NOC from the regulator, the IPO will take six to eight months. The NSE’s IPO will be an offer for sale (OFS), which means existing shareholders may dilute their stake while the exchange receives no funds. Some of the key shareholders of the NSE include Life Insurance Corporation of India, General Insurance Corporation of India, Stock Holding Corporation of India, SBI Capital Markets Ltd and State Bank of India.

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Unfair market access allegations stall the approval
The NSE first filed for an IPO in 2016, but the public listing stalled following the co-location case. The exchange had faced allegations that some brokers received preferential access through the co-location facility at the NSE, early login and ‘dark fiber’ — which can allow a trader a split-second advantage in executing orders. The allegations of unfair market access were first raised by a whistle-blower in January 2015. A co-location facility is the data centre facility offered by exchanges to the stock brokers. A dark fibre refers to passive optical cables that are not connected to active electronics/equipment and do not have other data flowing through them, and can therefore be used to convey data between two points.

On January 15, 2026, the Sebi Chairman said that the regulator had, in principle, agreed to the settlement applications filed by the NSE in co-location and dark fibre matters. In June last year, the NSE had said that it had filed two separate settlement applications for a cumulative amount of Rs 1,387.39 crore with the markets regulator for the settlement of co-location and dark fibre cases. During the quarter ended September 30, 2025, it had set aside Rs 1,297.41 crore in provisions related to these two matters.