NSE Awaits SEBI's Green Signal To Begin IPO Process

The National Stock Exchange is awaiting approval from the capital markets regulator SEBI to kickstart the much-awaited initial public offering process, its MD and CEO Ashishkumar Chauhan said.

Additionally, he said that retail investors should avoid trading in the high-risk-derivatives and, only informed investors should get into such markets.

According to a SEBI study in the past, nine of the 10 traders lose money in derivatives trades. When asked about NSE's IPO plans, Chauhan on Thursday said, "We will submit a revised Draft Red Herring Prospectus (DRHP) as and when we get approval from SEBI."

The rival of NSE, BSE ( formerly Bombay Stock Exchange), launched its IPO in 2017 and is currently listed on the NSE.

Notably, Chauhan was the CEO of BSE during its listing. The NSE's listing plans were on the back-burner following a probe by SEBI against the exchange and some of its former executives over the alleged governance lapses.

It was alleged that the exchange misused its co-location facility and gave preferential access to certain trading members.

Earlier in December 2016, NSE had filed draft papers with SEBI for its much-awaited IPO. The initial share sale was expected to garner Rs 10,000 crore.

The existing shareholders were looking to offload 22% shares to the public through the OFS (Offer-for Sale) route.

Again in 2020, Vikram Limaye, NSE's then MD and CEO, told PTI, "We have approached SEBI to seek its approval for the IPO, and after that, we will start the process of appointing merchant bankers, who will help the exchange file draft prospects for the IPO."

Overall, the NSE has 9 crore registered investors and such investors come from over 99% of the geographical area of India, and only 33-35 PINCODES are currently excluded.

The investor base has seen more jump in the last five years, facilitated by rapid growth in digitisation, rising investor awareness, financial inclusion, and strong market performance.