NSE moves closer to listing as SEBI backs settlement in unfair access case

The long-awaited initial public offering (IPO) of the National Stock Exchange (NSE) has cleared a massive regulatory roadblock, bringing the country’s largest bourse one step closer to Dalal Street. 

According to a report by Reuters, the Securities and Exchange Board of India (SEBI) has agreed ‘in principle’ to the exchange's settlement application regarding the alleged unfair market access case.

Chairman Tuhin Kanta Pandey confirmed on Thursday that the regulator has backed the settlement, effectively dismantling the most significant hurdle preventing the bourse’s listing, Reuters reported.

Speaking at the 14th AIBI Annual Convention in New Delhi today (January 15), SEBI Chairman Tuhin Kanta Pandey highlighted that changes have been recommended to listing norms specifically to accommodate larger players.

"In just the first nine months of this financial year, 311 IPOs have raised Rs 1.70 lakh crore, with overall equity mobilisation having crossed Rs 3.80 lakh crore," Pandey said.

To facilitate the listing, the government has approved a 2.5 per cent stake dilution and is expected to issue a formal notification soon. This aligns with the regulator’s move last year to relax listing norms for mega-corporations. 

Reuters had reported earlier this week that the exchange is targeting an aggressive timeline, planning to file draft listing papers by the end of March. 

The NSE is reportedly already in talks with investment bankers and law firms to gauge investor appetite for what is anticipated to be one of India's biggest-ever IPOs.

Companies valued above Rs 5 trillion ($57 billion) post-listing are now permitted to offload just 2.5 per cent of their paid-up capital, down from the earlier requirement of 5 per cent—a regulatory tweak that notably benefits Reliance’s Jio and the NSE.

However, the formal appointment of these advisors is contingent upon receiving a 'no-objection' certificate from SEBI.