The National Stock Exchange (NSE) has received SEBI's approval for its Initial Public Offer (IPO). Chairperson Srinivas Injeti hailed it as a milestone, allowing the exchange to now prepare its Draft Red Herring Prospectus (DRHP).
Srinivas Injeti, Chairperson of the National Stock Exchange of India on Friday said the Securities and Exchange Board of India's approval for filing of Initial Public Offer (IPO) reinforces confidence in the NSE as an "integral part of the Indian economy and a beacon of indian capital markets."
"We are delighted to receive SEBI approval for our IPO -- a significant milestone in our growth journey. With SEBI's approval, we embark on a new chapter of value creation for all our stakeholders," Injeti said.
SEBI Greenlights IPO Process
Notably, NSE got the green signal from market regulator Securities and Exchange Board of India (SEBI) for filing of Initial Public Offer (IPO), sources said.
Once the key document, the No Objection Certificate (NOC), is in hand, NSE can officially proceed to prepare their Draft Red Herring Prospectus (DRHP).
The SEBI Chairman, Tuhin Kanta Pandey few weeks ago, while speaking with ANI, had said the board is at a very advanced stage of issuing the NOC.
NSE Managing Director and CEO Ashish Chauhan on Tuesday had said they will start work on their Draft Red Herring Prospectus (DRHP) for their IPO after receiving the necessary NOC from the market regulator, SEBI. "Once the NOC from SEBI is received in reality and in paper, we will start working on our DRHP," Chauhan said.
The Draft Red Herring Prospectus (DRHP) is typically a document that presents the company's financial details, future prospects, and other key aspects of the business, and is filed with the regulator to raise capital, essentially through public offerings of its shares.
Overcoming Historical Hurdles
NSE has been seeking regulatory clearance for its public listing for several years, following governance concerns and the co-location controversy that came under SEBI's scrutiny.
NSE initially filed its Draft Red Herring Prospectus (DRHP) in December 2016. The process was delayed by regulatory challenges, particularly allegations of unfair access to its algorithmic trading platform in India. Later in August 2024, the NSE reapplied to the Securities and Exchange Board of India (SEBI) for a no-objection certificate to proceed with its IPO. In October 2024, the NSE settled its Trading Access Point (TAP) Architecture and Network Connectivity case by paying a penalty of Rs 643 crore to SEBI, which was probing an alleged deficiency on the part of the exchange and its top officials to deal with a situation wherein some high-frequency stock traders were found to be gaming the system. (ANI)
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