The National Stock Exchange (NSE), India’s largest bourse, has finally bagged a crucial no-objection certificate (NOC) from SEBI for its long-awaited initial public offering (IPO). This green light paves the way for NSE to team up with merchant bankers and law firms to draft its IPO application, known as the Draft Red Herring Prospectus (DRHP).
Market watchers peg the timeline at 8-9 months for the IPO launch. It will be structured as an Offer for Sale (OFS), meaning no fresh capital flows to NSE, proceeds go straight to selling shareholders. Based on current share prices, NSE’s market cap could soar to around Rs 5 lakh crore, making it one of India’s biggest listings ever. NSE first filed for IPO in 2016 but pulled back amid regulatory hurdles.
The NOC came without waiting for clearance from SEBI’s High Powered Advisory Committee (HPAC) on settlements, a sticking point earlier. SEBI’s internal teams had already nodded to a consent-based resolution, speeding things up. The settlement proposal now heads to HPAC, then to a panel of SEBI’s two whole-time members (WTMs) for final sign-off. Once approved, SEBI can move to withdraw the case from the Supreme Court and close the chapter.
Settlement Clears Path Amid Co-Location Probe
On June 20, 2025, NSE filed a settlement application with SEBI over the high-profile co-location and dark fibre cases. Sources close to the matter say NSE agreed to shell out nearly Rs 1,400 crore. Its November 2025 financials already booked a Rs 1,297 crore provision, atop Rs 100 crore deposited per a 2023 SAT order.
Legal eagles note NSE had triumphed at the Securities Appellate Tribunal (SAT), and the Supreme Court offered SEBI no relief. Still, with shareholders eager for closure, the board greenlit the payout after tough negotiations since March 2025. The final tab could rise with 12% interest until settlement.
At the heart of the co-location saga: allegations that select brokers parked servers next to NSE’s for lightning-fast data access, edging out rivals. Dark fibre claims pointed to NSE granting VIP connectivity lanes to a few.
This resolution lifts a major overhang, unlocking NSE’s IPO dream and signaling regulatory pragmatism in India’s booming markets.
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