NSE To Begin IPO Process Only After SEBI Nod, Says CEO Ashish Chauhan

The National Stock Exchange will only begin work on its initial public offering after receiving a no-objection certificate from the Securities and Exchange Board of India, Managing Director and Chief Executive Officer Ashish Chauhan said on Friday.

“We have not initiated even the first step in the process,” Chauhan told reporters ahead of his biography launch event. “We need to obtain a no-objection certificate from the regulator. It is only after we receive that, would we start preparing the draft red herring prospectus.”

He did not confirm whether the IPO would happen in 2025.

His comments come amid reports that the NSE had restarted its IPO plans last year and applied for a no-objection certificate from SEBI. However, concerns flagged by the regulator over governance, internal processes, and stake reductions in clearing corporations reportedly led to a pause in the process. Meanwhile, trading of NSE’s unlisted shares has been active on social media-driven platforms.

On SEBI’s recent decision to allow NSE to settle derivatives contracts on Tuesdays and BSE on Thursdays, Chauhan said the exchange initially chose Monday, but later selected Tuesday from the options provided by the regulator. “It is acceptable to us,” he added.

Chauhan also said that stricter SEBI norms for retail investors in derivatives trading had brought down participation by 30–40% over the past year. “Nearly 5.5 million people traded in derivatives in June last year. This has come down to around 2.5–3 million,” he said, attributing the drop to higher margins, larger lot sizes, and tighter calculation rules introduced to curb overtrading.

On direct listing of Indian companies on NSE’s international exchange at GIFT City, Chauhan said it could happen in the next two to three quarters. Discussions are underway with several Indian and foreign companies, he said. So far, no Indian company has listed its shares on either NSE or BSE’s GIFT City platforms, though BSE’s India International Exchange had previously indicated interest from five companies.