Wed May 28 04:20:00 UTC 2025: **News Article:**

**NSE IPO Impasse Nearing Resolution, Unlisted Shares Soar**

Mumbai – A potential breakthrough in the long-standing deadlock between the National Stock Exchange (NSE) and the Securities and Exchange Board of India (Sebi) regarding the exchange’s public listing is on the horizon, sparking investor optimism and a surge in the grey market price of NSE’s unlisted shares.

Sources familiar with the discussions indicate that NSE may receive a no-objection certificate (NoC) from Sebi for its initial public offering (IPO) within weeks. This development could resolve years of legal battles and regulatory obstacles.

Two primary scenarios are under consideration: Sebi granting the NoC with added disclosures in the IPO prospectus about ongoing court cases, or an out-of-court settlement where NSE pays a fee to Sebi in exchange for the regulator withdrawing the cases. Discussions are reportedly focused on the “dark fibre” case, which involves allegations of unfair access to NSE’s co-location servers for certain high-frequency traders.

Sebi Chairman Tuhin Kanta Pandey recently signaled progress, stating that outstanding issues are being resolved and that the regulator will move forward with the IPO.

The prospect of a regulatory green light has already boosted the exchange’s unlisted shares, with prices rising from ₹1,550 to nearly ₹1,900 in the past two weeks, according to Viral Mehta of IIFL Capital Services Ltd. The number of NSE investors has also increased significantly, from 22,000 in March to over 100,000, following the bourse’s expedited share transfer process.

NSE, holding a dominant market share in both equity cash and derivatives segments, has been seeking an IPO since 2016. The IPO is expected to be an offer for sale (OFS) by existing investors, including Life Insurance Corporation of India, Stock Holding Corporation of India, SBI Capital Markets, and State Bank of India. Foreign direct investment in the exchange stands at 21.7%.

The performance of BSE Ltd., NSE’s listed rival, serves as an example of investor appetite for exchange stocks.

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