NSE IPO: SEBI Issues Observation Letter for Rs 30,000 Crore Public Issue

The Securities and Exchange Board of India (SEBI) has issued an observation letter for the proposed Rs 30,000-crore initial public offering (IPO) of the National Stock Exchange, according to a regulatory update on Friday. The market watchdog issued its observations for the IPO, which comprises an offer for sale by existing shareholders, the update showed. However, reports claim that the issue is expected to be launched later this month, subject to the completion of remaining regulatory and procedural steps.

Earlier this month, BSE Managing Director and CEO Sundararaman Ramamurthy said NSE had confirmed that it would not seek permission to trade on its own exchange after listing, according to reports. The clarification followed reports that NSE could potentially trade on its own exchange under the permitted-to-trade (PTT) category. "NSE has confirmed no addendum will be issued for self-trading along with offer document," he said. Ramamurthy said BSE had also sought permission to trade on its own exchange in 2017 but was not allowed to do so.

NSE's draft red herring prospectus -- filed with SEBI in June -- highlighted regulatory, technology and cybersecurity risks as well as its dependence on trading revenues. The exchange said transaction charges accounted for 78.65 per cent of its operating revenue in fiscal 2026 with options trading contributing 60.22 per cent of total revenue from operations.

It also warned that further regulatory tightening, changes in investor behaviour and a shift towards alternative asset classes could adversely affect trading volumes and profitability. NSE disclosed that it had incurred substantial settlement costs in recent years, including more than Rs 643 crore in October 2024 and Rs 40.35 crore in July 2025. The exchange also flagged unresolved legal and regulatory proceedings, including matters related to co-location and dark fibre cases which it said could have reputational and financial implications.

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