The National Stock Exchange of India (NSE), the country’s largest bourse and the world’s top derivatives exchange, has formally approached the Ministry of Finance seeking intervention in a prolonged stalemate with the Securities and Exchange Board of India (SEBI) over its long-pending initial public offering (IPO), according to sources familiar with the matter.
NSE’s appeal marks a significant escalation in its efforts to break an impasse that has kept the exchange from listing since 2016. While its primary domestic competitor, BSE Ltd, has been publicly traded since 2017, NSE has faced persistent roadblocks in securing a regulatory green light due to unresolved legal cases and ongoing governance concerns flagged by SEBI.
The exchange submitted a letter to the finance ministry following SEBI’s failure to grant a ‘no objection certificate (NOC)’ for its latest IPO application filed in March. This is not the first time NSE has reached out to the government — similar requests were made in 2019, twice in 2020, and most recently in August 2024 — but the latest move appears to reflect growing frustration within the organization.
According to one source, NSE’s letter specifically urges the ministry to engage with newly appointed SEBI Chairman Tuhin Kanta Pandey to resolve the issues stalling the IPO. Pandey, who took charge in March, recently stated that while the regulator is working toward a resolution, “commercial interests cannot override the public interest.”
SEBI’s hesitations reportedly stem from concerns over governance, including delayed appointments to key board positions. Notably, the exchange has been without an officially approved chairman since 2022. NSE, however, contends that SEBI has delayed approval of its recommended candidate, thereby contributing to the leadership vacuum.
The letter also addresses SEBI’s objections regarding the appointment processes of NSE’s top management. NSE maintains that its practices align with SEBI’s own regulations and has challenged the regulator’s recent decisions, alleging they unfairly disadvantage NSE in favor of BSE — particularly with regard to new derivatives trading rules and a contentious proposal requiring exchanges to divest from their clearing corporations.
Industry observers say the stalemate has broader implications. Major institutional investors such as Life Insurance Corporation of India (LIC), State Bank of India (SBI), Morgan Stanley, and the Canada Pension Plan Investment Board have been awaiting an IPO to exit their long-held positions.
Neither NSE, SEBI, nor the Ministry of Finance responded to requests for comment at the time of publishing.
As the standoff drags on, all eyes are now on the finance ministry to see whether it will step in to mediate one of India’s most closely watched regulatory battles in recent years.
Stay tuned with Elephants Finance for updates.
The National Stock Exchange of India (NSE), the country’s largest bourse and the world’s top derivatives exchange, has formally approached the Ministry of Finance seeking intervention in a prolonged stalemate with the Securities and Exchange Board of India (SEBI) over its long-pending initial public offering (IPO), according to sources familiar with the matter.
NSE’s appeal marks a significant escalation in its efforts to break an impasse that has kept the exchange from listing since 2016. While its primary domestic competitor, BSE Ltd, has been publicly traded since 2017, NSE has faced persistent roadblocks in securing a regulatory green light due to unresolved legal cases and ongoing governance concerns flagged by SEBI.
The exchange submitted a letter to the finance ministry following SEBI’s failure to grant a ‘no objection certificate (NOC)’ for its latest IPO application filed in March. This is not the first time NSE has reached out to the government — similar requests were made in 2019, twice in 2020, and most recently in August 2024 — but the latest move appears to reflect growing frustration within the organization.
According to one source, NSE’s letter specifically urges the ministry to engage with newly appointed SEBI Chairman Tuhin Kanta Pandey to resolve the issues stalling the IPO. Pandey, who took charge in March, recently stated that while the regulator is working toward a resolution, “commercial interests cannot override the public interest.”
SEBI’s hesitations reportedly stem from concerns over governance, including delayed appointments to key board positions. Notably, the exchange has been without an officially approved chairman since 2022. NSE, however, contends that SEBI has delayed approval of its recommended candidate, thereby contributing to the leadership vacuum.
The letter also addresses SEBI’s objections regarding the appointment processes of NSE’s top management. NSE maintains that its practices align with SEBI’s own regulations and has challenged the regulator’s recent decisions, alleging they unfairly disadvantage NSE in favor of BSE — particularly with regard to new derivatives trading rules and a contentious proposal requiring exchanges to divest from their clearing corporations.
Industry observers say the stalemate has broader implications. Major institutional investors such as Life Insurance Corporation of India (LIC), State Bank of India (SBI), Morgan Stanley, and the Canada Pension Plan Investment Board have been awaiting an IPO to exit their long-held positions.
Neither NSE, SEBI, nor the Ministry of Finance responded to requests for comment at the time of publishing.
As the standoff drags on, all eyes are now on the finance ministry to see whether it will step in to mediate one of India’s most closely watched regulatory battles in recent years.
Stay tuned with Elephants Finance for updates.
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