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The National Stock Exchange of India (NSE) has taken a significant step towards its long-awaited initial public offering (IPO) by requesting a No Objection Certificate (NOC) from the Securities and Exchange Board of India (Sebi). This decision comes after a prolonged period of anticipation and delays, stemming from regulatory probes related to the collocation scam, among other factors. The NSE board of directors initiated this process by writing to Sebi, seeking their approval for the public issue. The move was triggered by an ongoing case in the Delhi High Court, where the exchange's lack of communication with Sebi regarding an NOC for the proposed IPO was brought to the court's attention.
The NSE's IPO has been in the works for several years, with the exchange filing its draft document back in December 2016. However, the approval process faced significant hurdles due to the regulatory investigations. The collocation scam, which involved preferential access to trading systems, cast a shadow over the exchange's plans. Despite these challenges, the NSE has continued to make progress towards its IPO, demonstrating its commitment to becoming a publicly listed entity.
The NSE's potential listing has garnered substantial interest, given its prominent position in the Indian stock market and its diverse shareholder base. Among its notable investors are state-owned insurance giants like LIC, General Insurance Corporation of India, New India Assurance Company, and National Insurance Company, along with major banks like the State Bank of India. Additionally, international investors such as the Canada Pension Fund have stakes in the exchange. The NSE's shares are actively traded in the unlisted arena, indicating strong demand and a keen interest from both domestic and foreign investors in participating in the exchange's future success.