India’s largest exchange, the National Stock Exchange (NSE), is finally edging toward its long-delayed IPO. In June 2025, SEBI Chairman Tuhin Kanta Pandey signaled a regulatory green light, saying there are “no obstacles” remaining for the NSE IPO. This follows years of delays caused by legal overhangs. The latest news — including SEBI’s imminent nod and a massive legal settlement offer — suggests the IPO could launch within the next 1–2 years.
In this post, we’ll break down these developments, explain key terms like the NSE co-location case, compare the NSE IPO with other big upcoming IPOs (like Tata Capital and HDB Financial), and discuss what it all means for investors and the Indian stock market.
Regulatory Green Light for the NSE IPO
In a June 21, 2025 interview, SEBI Chair Pandey confirmed that “no obstacles” remain blocking the NSE’s plans. This is the clearest signal yet that SEBI approval is imminent.
Key Points:
- SEBI Approval (NOC) – Sources say SEBI is expected to issue a “no objection certificate” (NOC) for the NSE IPO within weeks. Once SEBI accepts the NSE’s settlement offer, it will formally allow the IPO process to move forward.
- Clearing Legal Hurdles – The NSE has worked through major legal issues, notably the co-location and dark fibre cases. These were probes into unfair trading practices. Once SEBI signs off on the proposed settlement, those cases will be withdrawn, leaving no legal barriers.
- Ownership Structure – SEBI has also dropped its earlier demand to separate the clearing corporation from the exchange, meaning NSE can proceed with its current structure.
Together, these steps mean SEBI’s approval is now in sight. In fact, NSE has already settled a related case by paying ₹643 crore to SEBI in Oct 2024. Now the exchange has offered another ₹1,388 crore to resolve the remaining co-location and dark-fibre issues. If SEBI approves this settlement, regulatory approval will have effectively been secured.
Summary of Key Points:
- SEBI’s chair says “no obstacle” remains.
- NSE has offered ₹1,388 crore to settle old co-location and dark-fibre cases.
- NSE paid ₹643 crore in 2024 to settle part of the co-location case.
- Pending SEBI acceptance of the settlement, NSE will file its IPO prospectus.
SEBI’s Settlement Offer: ₹1,388 Crore to Settle Co-location and Dark Fibre
A major recent development was NSE’s decision to offer ₹1,388 crore to SEBI to end two long-running cases. The co-location case (involving preferential server access for some brokers) and a related dark-fibre case had hung over the IPO.
Settlement Breakdown:
- Co-location case: ₹1,165 crore
- Dark-fibre case: ₹223 crore
- Total: ₹1,388 crore
If SEBI approves this settlement, the cases will be withdrawn. This is likely the highest-ever settlement offer to SEBI and shows NSE’s determination to clear the last legal hurdle.
For context:
- The co-location scandal dates to 2015.
- The dark-fibre issue began in 2019.
- Both reached the Supreme Court.
NSE’s offer to settle effectively removes these overhangs. This also highlights NSE’s commitment: the exchange is essentially paying hundreds of crores to ensure a glitch-free, compliant listing. Reports also mention that the total financial effort could range between ₹1,388–1,640 crore, considering previous settlements.
SEBI approval isn’t just a formality — it reflects NSE’s governance reforms and readiness for public investment.
Timeline: When Might the NSE IPO List?
With SEBI approval imminent, investors are asking: “When will the NSE listing date be?”
Likely Timeline:
- Next 2 months (by ~Aug 2025): SEBI expected to issue NOC after accepting the ₹1,388-cr settlement.
- By December 2025: NSE to file its DRHP (draft IPO papers) with SEBI.
- FY2026–27 listing: NSE likely aims to launch the IPO in fiscal 2026 or 2027, depending on market conditions.
Some market watchers have mentioned a Diwali 2025 timeframe, but all signs currently point to a 2026 listing.
Comparison: Other Major Upcoming IPOs
The NSE IPO is part of a broader wave of financial-sector IPOs. Two major examples include:
Tata Capital:
- IPO Size: ~₹17,200 crore
- Status: SEBI is reviewing the draft.
- Purpose: To meet RBI’s deadline for listing large NBFCs by Sept 2025.
- Note: If successful, this will be the largest IPO in the Indian financial sector.
HDB Financial (HDFC Bank subsidiary):
- IPO Size: ~₹12,500 crore
- Status: IPO window was June 25–27, 2025.
- Highlights: Largest ever IPO by an Indian NBFC; strong anchor investment.
- Ownership: HDFC Bank owns ~94%, and is selling a portion in this IPO.
For context:
- LIC IPO (2022): ₹21,000 crore – the largest IPO in Indian history.
| Company | Approx. IPO Size | SEBI Status/Timeline | Notes |
|---|---|---|---|
| NSE (National Stock Exchange) | ~₹10,000 crore | NOC expected soon; DRHP by Dec 2025; listing FY26-27 | Clearing co-location case; India’s largest exchange |
| Tata Capital | ~₹17,200 crore | Awaiting SEBI observation letter | Tata NBFC; deadline by RBI for NBFC listings |
| HDB Financial | ~₹12,500 crore | IPO closed Jun 2025 | Largest NBFC IPO; HDFC Bank selling stake |
| LIC (for reference) | ~₹21,000 crore | Listed in 2022 | India’s largest IPO to date |
Implications for Investors and the Market
The clearing of regulatory hurdles for the NSE IPO has major implications:
1. Retail Investor Access
Retail investors will finally get a chance to invest in India’s most influential stock market platform. Given NSE’s brand and dominance, it may be heavily oversubscribed.
2. Valuation Benchmarking
This IPO will act as a benchmark for other financial market firms and exchanges, setting standards for valuation and compliance expectations.
3. Increased Liquidity
Institutional holders like banks and PSUs may offload shares in the IPO, creating new liquidity channels and improving overall market activity.
4. Regulatory Clarity
SEBI’s handling of this complex regulatory situation — culminating in a record settlement and green light — reinforces confidence in the regulator and the health of India’s financial ecosystem.
Conclusion
After years of delay, the NSE IPO is finally nearing launch. SEBI’s nod and the ₹1,388-crore settlement indicate the last barriers have been removed. While the exact listing date isn’t finalized, investors can expect NSE to file its DRHP by the end of 2025, and the public offering may take place sometime in 2026.
When viewed alongside Tata Capital and HDB Financial, the NSE IPO reflects a broader trend of financial sector giants tapping into India’s booming equity markets. Retail investors should monitor SEBI updates closely and prepare for one of the most awaited IPOs in India’s market history.
