National Stock Exchange IPO Upcoming
Already have an account? Apply now
About National Stock Exchange
Founded in 1994, the National Stock Exchange (NSE) is a prominent stock exchange in India, providing a platform for trading across various asset classes, including equities, derivatives, and fixed income. The exchange is known for its electronic trading system and technological innovations that support a transparent and efficient market. NSE’s comprehensive services include trading, clearing, settlement, market data, and financial education. It serves a wide range of clients, from institutional investors to individual traders, and plays a key role in the development of India’s capital markets.
Financials of National Stock Exchange
NSE Valuation
As of 2024, the National Stock Exchange (NSE) is valued at ₹4.7 lakh crore. This increase in valuation reflects the ongoing activity in India’s financial markets, with demand for NSE’s services contributing to its higher value. The NSE continues to maintain a significant presence in the Indian capital markets, providing infrastructure for equity, derivatives, and other financial products. Its valuation underscores its role as a key player in the country’s financial ecosystem, as it adapts to market dynamics and investor needs.
Reasons Behind the IPO Delay and Steps Towards Resolution
The National Stock Exchange (NSE) first filed its Draft Red Herring Prospectus (DRHP) in December 2016, intending to raise Rs 10,000 crore through an offer for sale by existing shareholders. However, the exchange’s IPO has been delayed due to several regulatory challenges, most notably related to the co-location scandal, which raised concerns about corporate governance. In 2019, SEBI returned the draft prospectus, instructing NSE to resolve these governance issues before moving forward. Since then, the exchange has engaged with SEBI multiple times.
In October 2024, NSE settled a Rs 643 crore penalty related to the co-location case, addressing a key regulatory hurdle. However, SEBI flagged further deficiencies in NSE’s IPO application, giving the exchange 24 months to resolve them. Among SEBI’s concerns are NSE’s majority stake in its clearing arm, NSE Clearing Ltd, which the regulator believes should operate independently. NSE has responded by emphasising that its ownership complies with existing regulations, citing other exchanges with similar structures, and proposing to disclose potential ownership rule changes in its IPO prospectus. Additionally, NSE has outlined measures taken to improve its technology infrastructure and address key management concerns, including increasing its workforce. The exchange has committed to resolving pending legal cases to facilitate the IPO process.