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Latest Update on Approval for NSE IPO
The initial public offering of the National Stock Exchange (NSE) has been one of the longest awaited public issues in the Indian capital market, with investor expectations tied to it for several years. Recently, Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey indicated that the No Objection Certificate (NoC) required for the NSE IPO could be issued by the end of January 2026, which would allow the IPO process to move forward. This approval is an important regulatory step that will permit NSE to prepare its draft red herring prospectus (DRHP) for the IPO and submit it to SEBI.
Why the No Objection Certificate (NoC) Is Important
Just like public companies, stock exchanges are also required to obtain an NOC from SEBI before launching a public issue. Without this certificate, NSE cannot file its IPO DRHP. According to the SEBI Chairman, the process of issuing the NOC is now at a “very advanced stage” and the aim is to complete it within this month. Once the NOC is granted, the next stages of the NSE IPO will begin, including preparation of the DRHP and the subsequent review and approval process by SEBI.
Long Wait and Background of the NSE IPO
The National Stock Exchange began the process for its IPO in December 2016, but due to regulatory and governance related issues, the process remained stalled for several years. In particular, the co location and dark fiber cases led to investigations by SEBI and corrective measures that affected the progress of the IPO. To address these issues, NSE undertook steps such as changes in senior management, improvements in board structure, and strengthening of its compliance framework to meet regulatory requirements. In recent times, these reforms and the resolution of past issues have helped move closer to SEBI’s decision on issuing the NOC.
Next Timeline of the IPO Process
Even after the NOC is received, the listing in the stock market will not happen immediately. After getting the NOC, NSE will have to prepare its DRHP, following which SEBI will review it. According to experts, it may take around eight to nine months after the NOC is issued for the IPO to reach the listing stage. This means the NSE IPO could potentially be listed by the middle or end of 2026, although the final timeline is yet to be confirmed. This estimate is based on comments made by exchange executives and market analysts.
Impact on Investors and the Market
The NSE IPO is expected to not only change the structure of the market but also provide millions of investors an opportunity to participate in the primary market. It could also enhance the maturity of India’s equity markets and boost global investor interest. Signals from SEBI regarding the issuance of the NOC have created a positive sentiment in the market, raising investor expectations that the NSE listing will add new depth and competitive strength to the Indian capital market. However, investors are advised to wait for official updates from SEBI and NSE regarding the next steps and the confirmed timeline.
