NSE knocks SEBI door again for all-important NOC for proposed IPO

NSE Seeks SEBI NOC Again for Long-Pending IPO.

Expert Analysis:

• IPO Approval Request: NSE has again requested SEBI’s No Objection Certificate (NOC) from the capital market regulator to proceed with its IPO, which has been pending since December 2016.

• NSE’s Request: In a letter dated March 28, the NSE requests SEBI’s NOC to proceed with its IPO, including filing the DRHP. The letter is addressed to VS Sundarasan, Executive Director of the SEBI Market Regulation Department.

• Repeated NOC Requests by NSE: NSE, the country’s largest exchange by market share, has previously written to SEBI for an NOC for its IPO in November 2019, twice in 2020, and again in August 2024.

• SEBI's Response to NSE's Request: On February 28, SEBI responded to NSE’s NOC request, highlighting concerns on technology, key management personnel (KMP), ownership of clearing corporations, and ongoing colocation cases.

• Clearing Corporation Ownership: NSE asserts compliance with ownership rules, citing BSE and MCX as precedents.

• Technology Improvements: NSE has implemented 65 of 82 initiatives suggested by McKinsey in 2022, with nine dropped and eight remaining in the pipeline.

• Workforce Expansion: NSE's workforce has grown from 1,115 in FY23 to 1,673 in FY25, with significant increases in critical operations and regulatory staff.