Mumbai: The National Stock Exchange’s (NSE) proposed Rs 30,000 crore initial public offering (IPO) has moved a step forward after the Securities and Exchange Board of India (SEBI) issued its observation letter for the issue.
According to a regulatory update, the market regulator issued its observations on the IPO, which will be entirely an offer for sale (OFS) by existing shareholders.
IPO Launch Could Be This Month
Reports suggest the NSE IPO could be launched later this month, subject to the completion of the remaining regulatory and procedural requirements.
NSE had filed its draft red herring prospectus (DRHP) with SEBI in June, marking a major step towards the long-awaited listing of India’s largest stock exchange.
Earlier, BSE Managing Director and CEO Sundararaman Ramamurthy reportedly said NSE had confirmed that it would not seek permission to trade its own shares on its exchange after listing.
The clarification came amid reports about the possibility of NSE shares trading on its own platform under the permitted-to-trade category.
Trading Revenue Remains Key
NSE’s draft papers highlighted several risks, including regulatory changes, cybersecurity threats, technology-related issues and the exchange’s dependence on trading revenues.
Transaction charges contributed 78.65% of NSE’s operating revenue in FY26. Options trading alone accounted for 60.22% of its total revenue from operations.
The exchange cautioned that tighter regulations, changes in investor behaviour or a shift towards other asset classes could hurt trading volumes and profitability.
Legal, Regulatory Risks Flagged
NSE also disclosed significant settlement costs incurred in recent years. These included more than Rs 643 crore in October 2024 and Rs 40.35 crore in July 2025.
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The exchange has also highlighted pending legal and regulatory proceedings as potential risks.
These include matters linked to the co-location and dark fibre cases, which could have financial as well as reputational implications for the exchange.
With SEBI’s observation letter now issued, the focus shifts to the remaining formalities and the final timeline for NSE’s much-awaited public issue.
