After years of waiting, India’s largest stock exchange is finally moving closer to the stock market.
The National Stock Exchange of India (NSE) has received approval from the Securities and Exchange Board of India (SEBI) to proceed with its much-awaited initial public offering (IPO), bringing one of the country’s most closely watched listings a step closer.
The proposed IPO could raise about ₹30,000 crore through an offer for sale (OFS). At that size, NSE’s public issue could become the second-largest IPO in India, behind the proposed Jio Platforms issue.
The NSE IPO is unusual for another reason as far as investors are concerned. The exchange that has been at the centre of India’s stock market activity for decades will itself become an investment opportunity.
The proposed issue will involve existing shareholders selling their holdings rather than NSE issuing new shares. This means the proceeds will go to the selling shareholders and not to the exchange. Around 14.89 crore shares, or close to 6% of NSE’s equity, are expected to be offered.
Several institutional shareholders are expected to participate. State Bank of India is among the prominent sellers, along with a number of government-owned financial institutions and insurers. Life Insurance Corporation of India, however, is expected to retain its stake.
The approval marks an important turning point for NSE, whose plans to go public have been delayed for nearly a decade.
The exchange had first sought to launch an IPO in 2016. Its plans subsequently became entangled in regulatory proceedings linked to the co-location controversy, which raised questions over preferential access to NSE’s trading infrastructure.
Those concerns have gradually moved towards resolution. A long-running legal matter involving SEBI and NSE was recently settled, removing one of the key hurdles that had stood in the way of the exchange’s listing plans.
The timing could hardly be more significant.
NSE has grown into a critical part of India’s financial system. It operates the benchmark Nifty 50 index and has a dominant position in equity derivatives trading. The exchange also ranked among the world’s busiest derivatives markets in terms of contracts traded.
That scale has translated into strong financial performance.
For the year ended March 2026, NSE reported a consolidated profit after tax of ₹10,302 crore, while total income stood at ₹18,713 crore. Its earnings have benefited from sustained activity across India’s equity and derivatives markets.
The momentum has continued into the current financial year. NSE reported a consolidated profit after tax of ₹3,120 crore for the April-June quarter, an increase of 7% from the same period a year earlier. Revenue from operations rose 13% to ₹4,560 crore.
Those numbers are likely to be closely examined by investors as they assess the exchange’s valuation.
NSE’s proposed listing also comes at a time when India’s capital markets are drawing greater participation from retail and institutional investors. Rising demat accounts, strong derivatives activity and increasing participation in equities have helped exchanges build highly profitable businesses.
But investors will also have to consider the risks.
NSE’s revenues are closely linked to market activity, particularly trading volumes. Changes in derivatives regulations, lower trading activity or tighter market rules could affect earnings. The exchange also operates in a highly regulated environment, making regulatory developments an important factor for its future growth.
The IPO valuation will therefore be one of the biggest talking points once NSE announces its price band.
Shares of NSE have been actively traded in the unlisted market, giving investors an indication of the valuation the exchange could command when it finally enters the public market. However, the informal unlisted-market price should not be treated as the final IPO valuation, which will depend on the official offer price and investor demand.
The proposed listing could also give India’s IPO market a major boost.
With several large companies preparing to tap the primary market, NSE’s entry would be among the most high-profile events on Dalal Street. It would effectively put the operator of one of the world’s major exchanges under the same market scrutiny faced by the companies whose shares trade on its platform.
The exchange is reportedly looking at a September listing, although the final timetable, price band and issue details will be confirmed through official announcements.
The irony will not be lost on Dalal Street. Soon, investors who have spent years trading on NSE could find themselves trading NSE itself.