India’s markets regulator SEBI on Friday cleared the National Stock Exchange of India’s IPO, paving the way for the country’s largest bourse to make its long-awaited stock market debut after nearly a decade of regulatory delays.
The share sale could rank among India’s biggest-ever, alongside billionaire Mukesh Ambani’s Jio. NSE has been valued at about $55 billion in the unlisted market, according to Reuters estimates, potentially placing it among the country’s 10 most valuable companies by market capitalisation.
NSE dominates trading in India’s equity derivatives market and is the world’s most active derivatives exchange by contracts traded. The exchange operates India’s benchmark Nifty 50 index .
The proposed offering will be an offer for sale by existing shareholders, meaning NSE itself will not receive proceeds from the issue.
Despite a recent clampdown on derivatives trading by retail investors, India’s capital markets penetration remains low compared with other major economies.
The Securities and Exchange Board of India issued observations on NSE’s draft prospectus, a key regulatory milestone that allows companies to proceed with the next steps towards launching share sales.
NSE filed its draft red herring prospectus with SEBI on June 17, reviving a listing plan that had been held up since 2016 by regulatory scrutiny and legacy legal issues.
NSE’s listing ambitions had been delayed by investigations related to its co-location and dark-fibre facilities, as well as other regulatory matters. The clearance follows NSE’s settlement of past lapses with SEBI, removing a major obstacle.
Rival BSE, which went public in 2017, has seen its shares surge 28-fold.