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Sebi says it is close to approving NSE’s IPO
Sebi chairman Tuhin Kanta Pandey also indicated the regulator has not yet decided whether NSE shares could trade on NSE under a permitted to trade category.
Sebi is likely to approve the National Stock Exchange of India’s IPO soon, according to Sebi chairman Tuhin Kanta Pandey. Speaking on the sidelines of an event, Pandey said the regulator is close to granting approval.
The exchange filed its draft red herring prospectus for an IPO valued at about ₹30,000 crore with Sebi in June, after a decade long delay tied to regulatory and legal disputes dating back to 2015, LiveMint Markets reported. The plan is structured as a large offer for sale, with existing shareholders set to sell 148.9 million shares, representing a 6% stake in NSE, and no funds flowing to the debuting company.
On whether NSE would be able to trade its own shares on its platform, Pandey said the decision is not yet made and Sebi will have to consider it. He added that Sebi is unlikely to make immediate changes to its current framework for India’s closing auction session, which was introduced on 3 August.
LiveMint Markets noted the auction system aims to determine a single closing price by matching pooled orders, with auction orders allowed within a ±3% range. Pandey said participation should grow as brokers enable the process in their apps and investors learn to use the market, while acknowledging brokers have criticized the system for low liquidity and price uncertainty.