India’s largest stock exchange, the National Stock Exchange of India (NSE) is moving closer to its long-delayed public listing. People familiar with the matter say the exchange is planning to file its draft red herring prospectus (DRHP) for an initial public offering by the end of March 2026. This would mark the first formal step toward a stock market debut after years of regulatory and legal setbacks that pushed back earlier plans.
The original IPO filing dates back to December 2016. Since then, NSE’s listing has remained on hold as the exchange dealt with investigations and compliance issues raised by the market regulator.
Regulatory Clearance
The key to NSE’s IPO lies with the Securities and Exchange Board of India. SEBI chairman Tuhin Kanta Pandey has said the regulator is at an advanced stage of granting a No Objection Certificate to NSE. This approval is mandatory before the exchange can proceed with any public offering. Sources indicate that this clearance could come as early as January 2026 if the remaining formalities are completed properly.
NSE has submitted settlement proposals to SEBI worth around Rs 1,388 crore. These relate to past issues involving co-location and dark fibre services that allowed certain brokers to receive faster access to trading data. SEBI is reviewing these settlements, and their approval would remove the last major regulatory setbacks standing in the way of the IPO.
How Past Controversies Delayed the IPO?
NSE’s IPO plans were derailed after regulators uncovered irregularities in its co-location services. Investigations found that a few trading firms received unfair advantages, which raised serious concerns about market fairness and governance. In 2019, SEBI imposed penalties of around Rs 11 billion on NSE and several former executives. The matter also went before the Supreme Court.
Over the last two years, the exchange has taken steps to close these cases. In October 2024, NSE paid Rs 643 crore as part of a settlement related to these violations. This payment cleared one of the largest outstanding liabilities and brought NSE closer to meeting all regulatory requirements for listing.
Strong Financial Position
NSE is entering this phase with solid financial performance. In the second quarter of FY26, the exchange reported an adjusted profit after tax of Rs. 3,396 crore. This was a 16% increase from the previous quarter, even after setting aside money for settlement-related provisions.
The exchange also has a wide shareholder base, with about 1.77 lakh shareholders and no single promoter holding a controlling stake. In the unlisted market, NSE shares are trading at levels that imply a valuation of around $55 billion, underlining investor confidence in the company’s long-term prospects.
Why NSE’s IPO Matters for Indian Markets
The listing of NSE will be more than just another IPO. It will give investors direct ownership in the backbone of India’s capital markets. With regulatory hurdles largely addressed and strong profits in place, along with a clear filing timeline emerging, the NSE’s public offering is shaping up to be one of the most important financial events of 2026.
