National Stock Exchange’s long-awaited initial public offer may finally launch in Samvat 2082, Managing Director and CEO Ashishkumar Chauhan indicated, subject to regulatory approval from the Securities and Exchange Board of India (SEBI).
“NSE has been waiting for its IPO approval from SEBI called No Objection Certificate. So hopefully if it comes you will see NSE’s IPO in next Samvat,” Chauhan told businessline on the sidelines of Muhurat trading on Diwali.
The NSE chief emphasised that the exchange has been operating with listed company standards despite not being publicly traded. “It has been following all the corporate governance criteria. We do not have any specified promoter,” he said. Chauhan noted that the IPO is primarily driven by existing investors seeking an exit route.
Derivatives market reforms under discussion
On the subject of derivatives trading regulations and the introduction of longer expiries to check manipulation, Chauhan reiterated NSE’s long-standing position on participant eligibility. “People who trade in derivatives have to have minimum net worth and also some expertise or some education qualifications which should allow them to become eligible to trade in derivatives. That has been our suggestion to SEBI even three years back and two years back and even last year,” he stated.
The comments come as SEBI is mulling the feasibility of phasing out weekly expiries and introducing monthly expiries. “SEBI is going to come out with a consultative paper giving various ways to regulate this market. So once the consultation paper comes it will be interesting to see what people’s views are,” Chauhan added.
SME IPOs show strong long-term performance
Addressing concerns around small and medium enterprise (SME) IPOs, which have seen volatile performance, Chauhan defended the segment’s track record. “If you look at the SME market over the last 13 years, the SME segment in India started in 2012. Last 13 years, year on year SME markets have given great returns,” he said.
He acknowledged recent subscription excesses but expressed confidence in regulatory oversight. “The regulator SEBI has taken good actions on ensuring that the new issues come and even when they list, they stay within particular limits,” Chauhan said, adding that SEBI’s regulations would lead to “much better sort of behaviour in SMEs also going forward.”
Mixed Samvat 2081 market performance
On Samvat 2081’s performance, Chauhan noted mixed results. “2081 has been a slightly slower year. The Nifty has given 6.5 per cent returns which is good compared to the FD returns but not that great compared to say gold or silver which have given very very good results,” he observed, attributing underperformance partly to tariff wars and geopolitical conflicts.
However, he pointed to strong economic fundamentals, highlighting India’s services export growth of 14.5 per cent over the last 12 months and robust performance in construction, real estate, and consumer durables sectors. “Yesterday there were 125,000 cars that were delivered. In 1985, we were not even manufacturing 100,000 cars, we were delivering in one single day,” he said, illustrating India’s economic transformation.
Reflecting on Muhurat trading’s cultural significance, Chauhan said, “Muhurat Trading is a time to reflect on the values that shape our financial journey, including trust, knowledge, and discipline,” wishing investors “a prosperous and financially enlightened Diwali.”
NSE has also expanded into new segments, recently launching electricity futures and applying for index futures in bonds. “Electricity markets are getting reformed because of the success of NSE’s electricity futures,” Chauhan noted.