The NSE IPO has moved one step closer to reality. Managing Director and CEO Ashish Kumar Chauhan stated on Tuesday, 28th January, that the exchange will start its process of filing DRHP (Draft Red Herring Prospectus) after receiving an NOC.
SEBI’s In-Principle IPO Approval
SEBI Chairman Tuhin Kanta Pandey confirmed that the regulator has agreed in principle to the exchange’s settlement plea and is in advanced stages of issuing a No Objection Certificate (NOC), potentially by January 2026. While this does not amount to a final clearance, it is still a crucial step forward.
In-principal approval indicates that SEBI broadly agrees to the terms proposed by the NSE to resolve the dispute under its settlement framework. The settlement involves a payment of around Rs. 1,388 cr. approximately.
Read More Here: SEBI Settles Dispute With NSE In Principle.
NSE CEO Ashish Chauhan Statement
“Once the NOC from SEBI is received in reality and in paper, we will start working on our DRHP,” Chauhan said to news agency ANI.
He also stated that it will take 3-4 months for NSE to prepare its DRHP and related documents, including offer for sale (OFS). The IPO process may take the next 8-9 months.
“NSE will be able to share a clear timeline after getting official confirmation”
Why Is DRHP Needed For NSE IPO?
The Draft Red Herring Prospectus (DRHP) is an essential document in any IPO process. It contains the following:
· Company Overview & Business Model
· Objects of issue
· Financials
· Risk Factors
· Promoter & Management
· Legal and Regulatory Disclosures
The DRHP is not a final document; it doesn’t include the IPO price band and number of shares, which are updated in the Red Herring Prospectus (RHP). This RHP is made public for IPO filing, and then NSE can raise money through the IPO.
Why NSE IPO Got Delayed For So Many Years?
In 2015, the National Stock Exchange (NSE) filed draft papers with SEBI for its IPO, but the plan was stalled due to serious governance concerns. One of the key issues was the co-location case, where certain algorithmic traders were given unfair access by placing their servers closer to NSE’s systems, allowing them to receive market data faster and gain an illegal trading advantage.
SEBI investigated the matter and found NSE in violation of multiple provisions of the SEBI Act and SECC Regulations. In 2019, the regulator ordered NSE to disgorge Rs. 625 crores with interest and imposed an additional penalty of Rs. 100 crores. Former NSE executives Chitra Ramkrishna and Ravi Narain were barred for governance failures, and the Enforcement Directorate later arrested Ramkrishna in a related case.
By Mid of Jan 2026, SEBI granted in-principle approval to the National Stock Exchange to settle the long-pending unfair market access case.
Read More Here About NSE Co-location Case
What’s Next For NSE IPO?
From all these DRHP and official developments, it looks like SEBI will take several months of 2026 to process the NSE IPO. Investors in the unlisted market can have a good chance to buy NSE unlisted shares after checking its valuation, so they can make the best of this phase before India’s biggest stock exchange goes public.
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