Priyanka Tiwari
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Suspense crime, Digital Desk : The wait for what is expected to be India's biggest Initial Public Offering (IPO) continues to lengthen. According to an analysis by financial services firm Motilal Oswal, the much-anticipated listing of the National Stock Exchange (NSE) is now unlikely to happen before March 2026. This significant delay stems primarily from persistent regulatory hurdles surrounding the stock exchange's shareholding structure.
The NSE, India's largest stock exchange and a flagship entity in the country's financial landscape, has been eyeing a public listing for years. Its immense size, robust trading volumes, and dominant market position have made its potential IPO one of the most eagerly awaited events in the Indian capital markets. However, the path to listing has been fraught with challenges, largely due to concerns raised by the market regulator, SEBI (Securities and Exchange Board of India).
The primary stumbling block remains SEBI's stringent "fit and proper" criteria for shareholders. The regulator has been keen on ensuring a diversified and suitable ownership structure for the exchange, particularly in the aftermath of the controversial co-location scam. SEBI's concerns over certain existing shareholders and the need for greater transparency and compliance have necessitated a prolonged period of internal adjustments and regulatory clearances for the NSE. Until these concerns are fully addressed and a revised shareholding pattern acceptable to SEBI is in place, the IPO is unlikely to get the green light.
Despite these ongoing regulatory complexities, the NSE's operational and financial performance remains robust. The exchange has continued to demonstrate strong growth in profits, reporting impressive figures for the fiscal year 2023 and the first quarter of fiscal year 2024. This strong underlying financial health makes the delay all the more frustrating for existing shareholders and potential investors, who are keen to participate in the exchange's growth story through its public offering.
For investors keenly watching the NSE's unlisted shares, this projection from Motilal Oswal brings an element of clarity but also prolonged uncertainty. While the exchange continues its efforts to navigate the regulatory maze, market participants will need to exercise considerable patience before they can witness the listing of this financial behemoth.
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