Mumbai: The Securities and Exchange Board of India (SEBI) has raised observations on the National Stock Exchange's (NSE) initial public offering documents and is awaiting clarifications from the exchange's lead managers, according to a report.
The exchange and its appointed merchant bankers are expected to respond to the regulator's observations before SEBI takes a final view on the proposed IPO.
NSE IPO Moves Closer to Approval
The development comes after SEBI Chairman Tuhin Kanta Pandey indicated that the regulator was close to approving NSE's draft papers, raising expectations that the long-awaited listing could move forward.
NSE filed its draft red herring prospectus with SEBI in June for an offer-for-sale (OFS) of up to 148.9 million equity shares with a face value of ₹1 each.
The proposed offering represents around 6% of NSE's paid-up capital.
The IPO will be entirely an OFS, with no fresh issue of shares. This means NSE will not receive any proceeds, with the money going to existing shareholders selling their stakes.
Regulatory Issues Delayed Listing
NSE's listing plans have been delayed for nearly a decade due to regulatory concerns, including the co-location and dark fibre cases.
The IPO process gained momentum after NSE received a no-objection certificate from SEBI and its board subsequently approved the listing proposal.
Last month, SEBI also agreed in principle to settle applications filed by NSE in the co-location and dark fibre matters for ₹1,491.21 crore.
NSE is currently estimated to have a valuation of around ₹5 lakh crore in the unlisted market.
Reports have also suggested that NSE is exploring the 'Permitted to Trade' route, which could allow its shares to trade on NSE while remaining formally listed on the BSE.
