The National Stock Exchange of India (NSE), the country’s largest equity bourse and the world’s top derivatives exchange by volume, has been at the center of one of the longest and most scrutinized IPO sagas in Indian corporate history. Nearly a decade after its first attempt to go public, the NSE IPO remains entangled in a complex web of regulatory hesitations, governance debates, legal overhangs, and investor impatience.
Here’s a detailed NSE IPO timeline and analysis of the events that have shaped — and delayed — the NSE IPO since its inception.
2016: Starting of NSE IPO Timeline
In 2016, the NSE filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), aiming to raise approximately INR 10,000 crore through an offer-for-sale by existing shareholders. The move promised liquidity for early investors and was expected to be a landmark event in India’s capital markets.
But the euphoria was short-lived.
2015–2017: The Co-Location Scandal Erupts
The IPO plans were swiftly derailed by revelations of the co-location (Colo) scandal, where certain brokers allegedly received unfair access to NSE’s trading systems — giving them a speed advantage. The allegations triggered a full-blown regulatory investigation.
Fallout:
- SEBI imposed penalties exceeding INR 1,000 crore on NSE.
- NSE was barred from accessing capital markets for six months.
- Top management changes were mandated.
- The IPO was shelved.
2017–2022: Regulatory and Legal Freeze
Over the next several years, SEBI’s focus remained on enforcement and legal closure. Between 2017 and 2022, three SEBI chairpersons (U.K. Sinha, Ajay Tyagi, and Madhabi Puri Buch) oversaw the case without clearing the IPO path.
Private equity and institutional investors began to exit gradually, frustrated by the stalemate. Elevation Capital, for example, exited completely by selling 68 lakh shares (worth INR 3,200 crore) in unlisted market in FY24, while others like Ontario Inc. and Crown Capital also pared holdings.
2024: Renewed Hope and Legal Push
In May 2024, the People Activism Forum filed a writ petition in the Delhi High Court, urging SEBI to allow the IPO. In response, NSE reapplied for a No Objection Certificate (NOC) in August 2024.
Later that year, NSE paid INR 643 crore to SEBI as partial settlement related to the co-location case, signaling intent to resolve outstanding issues. However, SEBI flagged four unresolved concerns:
- Technology & Operational Resilience – Concerns over past trading outages.
- Governance & Board Accountability – Demands for ethical oversight.
- Pending Litigation – Legal cases still pending in the Supreme Court.
- Clearing House Conflicts – NSE’s control over NSE Clearing Corporation Ltd (NCL).
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February–May 2025: Regulatory Clarity Emerges
In February 2025, SEBI issued a detailed letter to NSE highlighting deficiencies and expectations. Shortly after, SEBI Chairman Tuhin Kanta Pandey publicly clarified that SEBI was not blocking the IPO but ensuring “due diligence, not delay.”
By May 2025, fresh momentum appeared:
- NSE reportedly offered INR 1,000 crore to settle remaining issues with SEBI.
- SEBI formed an internal committee to assess IPO readiness.
- Pandey stated that “all issues are being resolved” and sounded “very hopeful.”
- NSE MD & CEO Ashish Chauhan confirmed the exchange is waiting for SEBI’s NOC before filing fresh DRHP.
- The IPO valuation was pegged at INR 4.7 lakh crore (~USD 56 billion).
Investor Sentiment and Grey Market Surge
Despite the regulatory delays, NSE’s shares in the unlisted grey market have surged, up 75% in 2024 and another 27% in a single day on 29 May 2025, amid IPO buzz and robust quarterly results.
Currently, over 13.8% of NSE’s shares are held by 10,000+ retail investors in the unlisted market — a testament to retail FOMO and investor confidence.
Top Shareholders in NSE (as of March 2024):
| Shareholder | Stake |
|---|---|
| LIC | 10.72% |
| Aranda Investments (Mauritius) | 5.00% |
| Stock Holding Corporation | 4.44% |
| SBI Capital Markets | 4.33% |
| Veracity Investments | 3.93% |
| State Bank of India | 3.23% |
| Crown Capital | 2.90% |
| PI Opportunities Fund | 2.68% |
| TIMF Holdings | 2.20% |
| Canada Pension Plan | 2.00% |
State-owned entities like LIC and SBI have publicly expressed the need for partial monetization of their long-held stakes, but continue to be locked in by the IPO delay.
Conclusion
The NSE IPO is no longer just a financial event; it has evolved into a test of India’s regulatory maturity and investor protection framework. SEBI’s insistence on governance and systemic integrity is commendable, but indefinite delays also erode investor trust and capital confidence.
A balanced resolution — possibly in FY26 — could unlock value for stakeholders, boost market confidence, and reaffirm India’s standing in global finance. Until then, the NSE IPO timeline remains most delayed in the Indian Corporate history.