SEBI issues observations on NSE’s IPO draft papers

The update comes a day after SEBI Chairman Tuhin Kanta Pandey said the market regulator was “close” to approving NSE’s draft papers

The Securities and Exchange Board of India (SEBI) has issued observations on the draft papers filed by the National Stock Exchange (NSE) for its long-awaited initial public offering (IPO).

The markets regulator has issued observations to NSE on August 21 and is awaiting a response from the exchanges’ lead manager.

The update comes a day after SEBI Chairman Tuhin Kanta Pandey said the market regulator was “close” to approving NSE’s draft papers.

NSE had filed its draft red herring prospectus (DRHP) with SEBI in June for an offer for sale of up to 148.9 million equity shares with a face value of ₹1 each, representing nearly 6 per cent of its paid-up capital. The issue will not have a fresh issue component, with the proceeds going to the selling shareholders.

NSE’s listing plans have been in the works for years and had faced regulatory hurdles for the last decade, including issues related to the co-location and dark fibre cases. The exchange’s IPO plans gained momentum after SEBI gave it a no-objection certificate earlier this year, following which NSE’s board approved the proposed listing.

Last month, the regulator in-principle agreed to settle the applications filed by NSE in co-location and dark fibre matters for ₹1,491.21 crore.

The stock is currently trading at a valuation of around ₹5 lakh crore in the unlisted market and is expected to be one of the largest IPOs by size, at around ₹30,000 crore.

The exchange has appointed 20 book-running lead managers, including Kotak Mahindra Capital, which is the coordinating lead manager. Other include JM Financial, Morgan Stanley India, Citigroup Global Markets India, HSBC Securities and Capital Markets (India), JP Morgan India, SBI Capital Markets and Avendus Capital among others.

Once SEBI completes its review and clears the draft papers, NSE can proceed with the next steps towards launching what is expected to be one of India’s largest public offerings.

Published on August 28, 2026