By Admin 
NSE IPO: Securities and Exchange Board of India (SEBI) can issue a No-Objection Certificate (NoC) to the National Stock Exchange (NSE) by the end of this month and with this another step will be taken towards bringing the IPO. SEBI Chairman Tuhin Kanta Pandey said on Saturday, “We have to give them the NoC and then NSE will have to complete other processes like filing DRHP etc. Probably, it (NoC) will be issued by this month.”
What is NoC?
To launch an IPO, a company or a stock exchange like NSE needs approval from market regulator SEBI as well as other relevant parties. This shows that no one has any objection to bringing an IPO. You can understand NoC as a regulatory approval, which is required before launching an IPO.
Unlike ordinary companies, market infrastructure institutions like stock exchanges, depositories and clearing corporations are required to obtain a no-objection certificate from SEBI before submitting their draft red herring prospectus. This step reflects their importance for the stability and functioning of India’s financial markets.
Where is the matter stuck?
NSE’s IPO was stalled due to the Dark Fiber case, which alleged that between 2010 and 2014, some high-frequency traders got special access to the exchange’s co-location servers through fast private communication lines, allowing faster execution of trades.
In April 2019, SEBI directed NSE to return Rs 62.58 crore of alleged illegal earnings and banned senior officials related to it from market-related posts. SEBI had also imposed a fine of Rs 7 crore on NSE in 2022, which was later canceled by the Securities Appellate Tribunal.
After this, SEBI challenged the SAT order in the Supreme Court in September 2023 and February 2024.
Market cap of NSE is more than that of BSE.
According to InCred data, NSE’s unlisted share price stood at Rs 2,045 per share, giving it a market capitalization of Rs 5.06 trillion, almost five times the size of listed rival BSE. The market cap of BSE was $ 1.09 trillion as per exchange data as of Friday.
According to exchange data, as of November 30, NSE’s share in the equity cash segment was 92.7 percent and in the equity options segment was 74.3 percent. The special thing is that despite the high price of NSE shares, retail investors remain interested in its IPO. About 1.46 lakh investors hold NSE shares worth less than Rs 2 lakh.
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