MUMBAI: NSE, India’s largest stock exchange in terms of turnover and revenues, on Tuesday restarted its process to get listed, something that the bourse has been trying for over eight years now but has been delayed due to various regulatory hurdles.
On Tuesday, NSE’s board gave its management the go ahead to approach Sebi for its no objection certificate (NOC) for the bourse to file its IPO papers with the markets regulator, sources told TOI.The management has already approached the regulator. The request from NSE to Sebi follows a hearing in a court case in Delhi during which Sebi told the court that there were no new requests from NSE for an IPO.
Once the NOC from Sebi is in place, the bourse will prepare the draft prospectus, file the same with Sebi and once the regulatory nod is received after scrutiny, the bourse will launch its IPO, sources said.
NSE’s latest move is expected to expedite the process of listing of the country’s biggest stock exchange which has been hanging for over eight years due to various reasons. These included investigations relating to NSE’s preferential treatment to some entities in its F&O trading servers, cases related to Chitra Ramkrishna, its former MD, and other exchange officials.
In 2016, NSE had filed a draft prospectus with Sebi for its IPO. Around the same time, it emerged that the then MD Ramkrishna, along with some other officials, were involved in illegal activities. After Sebi started investigating the lapses and illegal acts, in 2019 the bourse had withdrawn its IPO documents. It had approached Sebi in 2022 again but was advised not to proceed.
On Tuesday, NSE had its annual general meeting during which it also informed its shareholders about its move for an NOC from Sebi for filing its IPO documents with the regulator. Once listed, NSE would be the third listed exchange in India, behind MCX and BSE.
Going by the value of NSE shares in the unlisted space, the bourse could have a market value of between Rs 2.1 lakh crore and Rs 3.1 lakh crore. This, however, could see some smart up move once listed due since publicly traded stocks enjoy an easy liquidity premium, market players said. In India, a stock exchange cannot list on its own trading platform. Hence, NSE will be listed and traded only on BSE.
On Tuesday, NSE’s board gave its management the go ahead to approach Sebi for its no objection certificate (NOC) for the bourse to file its IPO papers with the markets regulator, sources told TOI.The management has already approached the regulator. The request from NSE to Sebi follows a hearing in a court case in Delhi during which Sebi told the court that there were no new requests from NSE for an IPO.
Once the NOC from Sebi is in place, the bourse will prepare the draft prospectus, file the same with Sebi and once the regulatory nod is received after scrutiny, the bourse will launch its IPO, sources said.
NSE’s latest move is expected to expedite the process of listing of the country’s biggest stock exchange which has been hanging for over eight years due to various reasons. These included investigations relating to NSE’s preferential treatment to some entities in its F&O trading servers, cases related to Chitra Ramkrishna, its former MD, and other exchange officials.
In 2016, NSE had filed a draft prospectus with Sebi for its IPO. Around the same time, it emerged that the then MD Ramkrishna, along with some other officials, were involved in illegal activities. After Sebi started investigating the lapses and illegal acts, in 2019 the bourse had withdrawn its IPO documents. It had approached Sebi in 2022 again but was advised not to proceed.
On Tuesday, NSE had its annual general meeting during which it also informed its shareholders about its move for an NOC from Sebi for filing its IPO documents with the regulator. Once listed, NSE would be the third listed exchange in India, behind MCX and BSE.
Going by the value of NSE shares in the unlisted space, the bourse could have a market value of between Rs 2.1 lakh crore and Rs 3.1 lakh crore. This, however, could see some smart up move once listed due since publicly traded stocks enjoy an easy liquidity premium, market players said. In India, a stock exchange cannot list on its own trading platform. Hence, NSE will be listed and traded only on BSE.