The National Stock Exchange (NSE), India’s largest stock exchange, has formally requested the finance ministry’s intervention to resolve its long-standing IPO standoff with the Securities and Exchange Board of India (SEBI). The standoff has been ongoing since 2016, primarily due to governance concerns and pending legal matters, stalling NSE’s IPO plans. NSE seeks a ‘no objection certificate’ from SEBI, which it claims is crucial for progressing with its IPO process.
The National Stock Exchange (NSE), India’s largest stock exchange, is requesting the intervention of the Ministry of Finance to break a longstanding deadlock with the Securities and Exchange Board of India (SEBI) over its stalled Initial Public Offering (IPO). The IPO, initially planned in 2016, has been delayed for years due to regulatory challenges, including governance concerns and pending legal issues, which have raised doubts about the exchange’s readiness for public listing.
NSE has reached out to the finance ministry, appealing for assistance in resolving the issues with SEBI. The exchange is seeking a ‘no objection certificate’ (NOC) from SEBI, which it believes is necessary to advance its public offer.
The conflict between NSE and SEBI has intensified in recent months, with SEBI raising concerns over certain governance aspects of the exchange. NSE, in turn, has questioned SEBI’s neutrality, citing decisions that it argues negatively affect the exchange’s business operations.
This latest appeal marks a significant escalation in the ongoing dispute between NSE, SEBI, and the finance ministry. It also comes after NSE’s application in March, seeking SEBI’s approval for its IPO. The government’s intervention is seen as crucial to resolving the standoff and allowing large investors, including Life Insurance Corporation of India (LIC), State Bank of India (SBI), Morgan Stanley, and the Canada Pension Plan Investment Board, to exit their investments after years of waiting for the IPO to proceed.
Despite the growing tension, NSE’s request for government intervention has not yet been publicly acknowledged by SEBI or the Ministry of Finance.
The dispute highlights the complex relationship between India’s largest stock exchange and its regulator, and the role of government in facilitating business growth in a rapidly evolving market.
