National Stock Exchange has been eyeing to be listed for eight years now, but due to multiple regulatory issues, the largest stock exchange in the country is yet to go public. However, NSE has not given up and thus it has filed for an NSE IPO with SEBI, for the third time in the last eight years. On Tuesday, 27 August 2024, NSE restarted the procedure and filed the papers with SEBI to get to the No-objection certificate (NOC).
NSE IPO Listing Procedure
As of now, the board members of NSE have approved the initial public offering plan. The management has submitted the request for NOC with SEBI, and once NSE gets the NOC, they can start preparing their Draft Red Herring Prospectus (DRHP).
After drafting the prospectus, as per the nse ipo listing process, the DRHP will be filed with SEBI for its approval. Once SEBI approves the same, NSE will launch its IPO.
Why NSE IPO has been taking so long?
NSE has filed for its IPO twice prior to this attempt. Due to different regulatory obligations faced by the largest stock exchange in India, the stocks of NSE could not be listed earlier. This is the third time in a row that the stock exchange has filed for its IPO seeking a no-objection certificate from the market regulator in the first place.
One of the prime reasons for the delayed NSE IPO has been the stock exchange’s biased treatment towards certain entities like F&O trading servers and then it involved cases pertaining to Chitra Ramkrishna, ex-MD of the institution, and other officials in the exchange.
NSE first filed for its IPO in 2016, and then the draft prospectus was withdrawn as SEBI started investing in NSE as during that time, it was found that MD Ramkrishna and other officials were involved in illegal activities. Then again, in 2022, the largest stock exchange filed the draft prospectus but again SEBI advised not to proceed.
NSE Market Valuation
If the shares of NSE in the unlisted space are considered, then the market value of the stock exchange will be within ₹ 2.1 lakh crore and ₹ 3.1 lakh crore. This valuation can see a spike when the stock is listed due to market movements, liquidity premiums, and other factors. That said, the nse ipo price can only be decided after the institution prepares its Red Herring Prospectus.
Where will NSE be listed?
In India, stock exchanges cannot be listed on its own platform. Thus, NSE will be listed on BSE only, once the market regulator, SEBI approves the IPO. Currently, there are only two exchanges in the country that are listed that are BSE and MCX.
Source: TheTimesofIndia
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