The much awaited NSE listing is now in sight. The market regulator Securities and Exchange Board of India (SEBI) has cleared the long-awaited initial public offering (IPO) of the National Stock Exchange (NSE), with the market regulator issuing its observation letter to the exchange on September 4.


The regulatory clearance removes a key hurdle for NSE, which had filed its Draft Red Herring Prospectus (DRHP) with SEBI on June 17, 2026, nearly a decade after its earlier listing plans were stalled by regulatory issues.

With the observation letter now issued, NSE is expected to move towards the final stages of the IPO process. The exchange is likely to launch the public issue and list its shares on the BSE later this month, subject to completion of the remaining regulatory and procedural steps.  Market sources have indicated that RHP filing can be done by Tuesday, price band is likely to be announced on September 11 and issue opening a week later likley on September 11. The tentative listing under consideration is on September 25th. Although the these timelines have not been announced formally and are being discussed with merchant bankers.

The IPO will be entirely an offer for sale (OFS), with existing shareholders offering up to 14.89 crore equity shares, representing nearly 6 percent of NSE's paid-up capital. There is no fresh issue, meaning NSE itself will not receive any proceeds from the offering.

Based on the unlisted-market valuation of NSE at the time of the DRHP filing, the IPO is estimated to be worth around Rs 30,000 crore. At an indicative valuation of around Rs 5 lakh crore, the issue could become India's largest IPO, surpassing Hyundai Motor India's Rs 27,870 crore issue of 2024. The final issue size and valuation, however, will depend on the price band decided ahead of the IPO.

SBI Group is the largest selling shareholder and will offer up to 2.475 crore shares. Other major sellers include MS Strategic (Mauritius) Ltd, which will sell up to 1.60 crore shares; Canada Pension Plan Investment Board (CPPIB) with 1.19 crore shares; Aranda Investments (Mauritius) Pte Ltd with 1.12 crore shares; Bank of Baroda with around 1.10 crore shares; and Stock Holding Corporation of India Ltd with around 1.09 crore shares.

Other selling shareholders include General Insurance Corporation of India (GIC Re), The New India Assurance Company, National Insurance Company and United India Insurance Company. The OFS also includes individual shareholders.

The listing will mark a major milestone for India's capital markets, giving investors a direct avenue to own the country's largest stock exchange and providing existing shareholders with an opportunity to monetise their holdings through a public market.