6 days ago
Sebi Close to Approving NSE IPO After Decade-Long Wait
The National Stock Exchange, or NSE, wants to sell some of its shares to the public.
Sebi Chairman Tuhin Kanta Pandey said the regulator is close to approving the IPO.
NSE submitted its IPO documents in June.
The offering could be worth about ₹30,000 crore, with existing shareholders selling a 6% stake.
Reports said NSE hopes to launch the IPO by mid-September and list its shares by 25 September.
Sebi has not decided whether NSE shares can be traded on NSE’s own platform.
Sebi also said it will not immediately change the new closing auction session.
Brokers have criticized that system because it can have low trading activity and uncertain prices.
Pandey said financial regulators must also prepare for new risks created by artificial intelligence.
Sebi Chairman Tuhin Kanta Pandey said approval for NSE’s IPO is likely soon.
NSE filed its draft red herring prospectus in June for an approximately ₹30,000 crore IPO.
Existing shareholders plan to sell 148.9 million shares, representing a 6% stake through an offer for sale.
NSE reportedly aims to launch the IPO by mid-September and list by 25 September.
Sebi said it is not considering immediate changes to the closing auction session despite broker criticism.
- Who
- The Securities and Exchange Board of India (Sebi), Chairman Tuhin Kanta Pandey, and the National Stock Exchange (NSE).
- What
- Sebi is nearing approval of NSE’s IPO while declining to immediately change the closing auction session.
- Where
- The comments were made in Mumbai, India; the IPO concerns India’s capital markets.
- When
- Pandey made the comments on Thursday; NSE filed its draft prospectus in June, and the closing auction session was introduced on 3 August.
- Why
- The IPO plan is being revived after regulatory and legal disputes dating back to 2015 delayed NSE’s listing.
Sebi’s Position
Critics and Unresolved Questions
Closing auction session
Sebi’s Position
Sebi says it is not considering immediate changes and expects participation to increase as brokers update their interfaces and investors become familiar with the system.
Critics and Unresolved Questions
Brokers have criticized the session for low liquidity and price uncertainty; the article also reported unpredictable price swings after its introduction.
NSE shares on NSE
Sebi’s Position
Sebi has not yet decided whether NSE shares can trade on its own platform under the permitted-to-trade category.
Critics and Unresolved Questions
A reported plan to allow NSE shares on its own platform leaves an unresolved regulatory question about whether that arrangement should be permitted.
Key facts
- Potential IPO size
- Approximately ₹30,000 crore
- Shares offered
- 148.9 million shares through an offer for sale
- Stake represented
- 6% of NSE
- Draft prospectus
- Filed with Sebi in June after receiving a no-objection certificate
- Reported IPO timeline
- Launch by mid-September and possible listing by 25 September
- Closing auction session
- Introduced on 3 August for eligible equity-cash stocks with derivatives contracts
- Auction price range
- Orders can be placed within ±3% of a volume-weighted reference price
- AI-related risks
- Pandey cited opaque models, data, governance, and operational risks
Quotes
Tuhin Kanta Pandey
Chairman of the Securities and Exchange Board of India
“We are not looking at any changes, and the system is running as it is. Participation will increase and brokers will enable it in their apps and people will learn and come to this market.”
financialexpress.com
livemint.com
“We must move from entity-level risk management to network-level and system-wide risk management. We must look at financial resilience together with operational resilience”
financialexpress.com
Sources
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