More Stories

Informist, Friday, Jun. 20, 2025

 

AHMEDABAD – The National Stock Exchange of India plans to restart the process of an initial public offering and prepare a new draft red herring prospectus only after it receives a no-objection certificate from the Securities and Exchange Board of India, Managing Director and Chief Executive Officer Ashish Chauhan told reporters on Friday before the launch event of his biography.

 

"Actually, the process of IPO is pretty long. We have not initiated even the first step in the process. We are regulated by regulatory entity in our sector. We need their approval and we need to obtain a no-objection certificate. It is only after we receive NOC, would we initiate the process of preparing the draft red herring prospectus and then whatever time it would take," Chauhan said. He was non-committal when asked if the IPO would see the light of the day in 2025.

 

His comments come after several media reports said that last year NSE had restarted the process of its IPO and applied for a "no-objection" certificate with the market regulator. It was reported in March that NSE's IPO plan was on hold after SEBI flagged several concerns, including those over NSE's internal processes, governance, and its stake reduction in clearing corporations. Social media, too, is abuzz with frenzied trading of unlisted shares of NSE by investors. 

 

Chauhan was non-committal about the recent order of the market regulator permitting NSE to have Tuesday as a final settlement day for derivatives contracts and BSE to do so on Thursdays. "As you know, we had selected Monday, but we were asked to choose between Tuesday or Thursday and we chose Tuesday. It is acceptable to us," he said.

 

Talking about the impact of steps initiated by SEBI to cut down the participation of small retail investors in derivatives markets, Chauhan said that the overall volume has gone down by 30-40% since SEBI introduced new norms in October last. He said that SEBI was of the view that small retail investors were losing money by overtrading in derivatives. To curb this, SEBI increased the lot size, margins and changed the way margins were calculated. This has helped realise the intent of having small retail investors trade less in derivatives. "In last June, nearly 5.5 million people did at least one trade in derivatives. This has come down to around 2.5-3 million people trade in derivatives," Chauhan said.

 

On direct listing of stocks on NSE's international exchange in Gujarat International Finance Tec-City, Chauhan said that it could happen in the next two-three quarters. He said NSE was in talks with "many" Indian and international companies for the purpose. In February, BSE's international exchange at the GIFT City -- The India International Exchange Ltd -- had said that it was in talks with five Indian companies for direct listing of stocks and expressed hope of listing at least one before Mar. 31, 2025. However, so far not a single entity has got listed on either of the exchanges.  End

 

Reported by Sunil Raghu

Edited by Deepshikha Bhardwaj

 

For users of real-time market data terminals, Informist news is available exclusively on the NSE Cogencis WorkStation.

 

Cogencis news is now Informist news. This follows the acquisition of Cogencis Information Services Ltd by NSE Data & Analytics Ltd, a 100% subsidiary of the National Stock Exchange of India Ltd. As a part of the transaction, the news department of Cogencis has been sold to Informist Media Pvt Ltd.

 

Informist Media Tel +91 (22) 6985-4000 

Send comments to feedback@informistmedia.com

 

© Informist Media Pvt. Ltd. 2025. All rights reserved.