The National Stock Exchange (NSE) is ready to begin its initial public offering (IPO) process but awaits the approval from capital markets regulator Securities and Exchange Board of India (SEBI), according to chief executive officer (CEO) Ashishkumar Chauhan. According to a report by news website Moneycontrol, Chauhan had said that once the market regulator is more comfortable with NSE’s operations, the exchange will be allowed to re-apply to float its issue.
“As and when SEBI becomes more comfortable, they will tell us to apply (for IPO) and we will go ahead,” Chauhan had said in 2023. In December 2023, SEBI asked NSE to remain glitch-free for at least a year, enhance its technological infrastructure and corporate governance and resolve pending legal matters.
In 2021, NSE had to halt trading for several hours after its mainframe and disaster recovery sites malfunctioned, leading to intense scrutiny from SEBI. The stock exchange reiterated its listing hopes, which had been temporarily sidelined due to an investigation by SEBI into alleged misconduct involving the exchange and its senior officials.
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The investigation focused on accusations that NSE misappropriated its co-location facility and provided preferential access to specific trading members. The listing of NSE has been postponed for several years due to a series of corporate governance issues.
These concerns include the involvement of its former CEO Chitra Ramkrishna in the 2015 co-location scam and problems related to various technological failures. In 2021, the NSE faced a trading suspension for several hours when its mainframe and disaster recovery sites experienced malfunctions, attracting scrutiny from SEBI.
Also Read: NSE introduces 4 new indices in capital market and F&O segment from April 8
As of September 30, the shareholding pattern revealed that the NSE’s non-public ownership amounted to 44.03 per cent, slightly below the designated threshold of 49 per cent. Meanwhile, public holdings constituted 55.97 per cent, surpassing the mandated minimum of 51 per cent. In the latest proposed auction, NSE’s shares were valued at ₹3,150.
NSE reported an eight per cent rise in consolidated net profit to ₹1,975 crore for three months ended December 2023. The consolidated income from operations stood at ₹3,517 crore for the October-December quarter of the current financial year (2023-24), a surge of 25 per cent year-on-year, NSE said in a statement.
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Published: 04 Apr 2024, 06:08 PM IST