NSE Denies Reports of Contacting Government Regarding its IPO. The company stated that there has been no communication for the past 30 months. Read the full details.
NSE IPO: The National Stock Exchange (NSE) has recently refuted media reports regarding its Initial Public Offering (IPO). Reports suggested that NSE sought assistance from the Ministry of Finance to resolve issues related to the Securities and Exchange Board of India (SEBI). However, NSE clarified that it has not engaged in any communication with the Indian government on this matter for the past 30 months.
NSE's IPO: A Lengthy Process and Several Hurdles
NSE's IPO has been pending since 2016. The public listing of the world's largest derivatives exchange has been awaited. However, legal and governance-related issues have caused delays in its approval. Currently, NSE's main competitor, BSE, is already listed, and NSE's listing would attract several prominent investors, including large names like Life Insurance Corporation of India (LIC), State Bank of India (SBI), and Morgan Stanley.
NSE Denies Media Reports
Reuters recently reported that NSE applied for a No Objection Certificate (NOC) from SEBI in March and, receiving no action, sought help from the Ministry of Finance.
However, NSE refuted these reports, stating that it has not contacted any government agency in the past 30 months.
What are SEBI's Concerns?
SEBI Chairman Madhabi Puri Buch stated that the board prioritizes public interest over commercial interests. SEBI had concerns regarding certain governance issues, such as delays in the appointment of the board chairman. Until these issues are resolved, NSE's IPO cannot be approved.
NSE's Claim: Previous Requests for Government Assistance
Although NSE denied recent reports, Reuters stated that NSE had previously sought government support. According to Reuters, NSE contacted the government for assistance in November 2019, twice in 2020, and also in August 2024.
Will NSE's IPO Proceed?
NSE's IPO remains entangled in several regulatory concerns. Resolving certain issues between SEBI and other relevant authorities seems crucial before the IPO can proceed. NSE addressed and clarified these issues in its statement. If NSE's IPO receives approval soon, it will be a significant achievement for the Indian market.
