Explained: Why NSE’s IPO Was Delayed For Years — And What’s Changing Now

NSE IPO: The National Stock Exchange of India (NSE), despite being the world's largest derivatives exchange by trading volume, has faced prolonged delays in its initial public offering (IPO) plans.

Originally aiming to go public in 2017, the exchange has encountered multiple regulatory and governance challenges that have hindered its listing process. According to market trackers, the unlisted share price of NSE is trading at Rs 2300.

Key Factors Behind the Delay

Co-location Controversy

A significant setback arose from the co-location scandal, where certain brokers allegedly received preferential access to NSE's trading systems, enabling them to execute trades ahead of others. This led to investigations by the Securities and Exchange Board of India (SEBI) and the Central Bureau of Investigation (CBI).

In 2019, SEBI imposed a fine of Rs 1,000 crore on NSE and barred it from accessing the securities market for six months. This controversy severely impacted NSE's credibility and IPO prospects.

Leadership and Governance Issues

The tenure of former CEO Chitra Ramkrishna brought further complications. Investigations revealed that she had been sharing confidential information with an unidentified individual referred to as a "Himalayan yogi," who allegedly influenced key decisions at the exchange.

This revelation raised serious concerns about NSE's internal governance and decision-making processes.

Regulatory Hurdles

SEBI has been working closely with NSE to address unresolved issues preventing the IPO. Despite NSE submitting a new application in March 2025 for a no-objection certificate, SEBI has yet to grant approval. SEBI Chairman Tuhin Kanta Pandey stated that while a timeline cannot be provided, efforts are ongoing to resolve the outstanding matters.

Alleged Government Intervention

Reports suggest that NSE sought assistance from the finance ministry to intervene in its ongoing dispute with SEBI over the IPO. However, NSE has publicly denied any recent communication with the government regarding its IPO plans. This indicates a complex relationship between the exchange, the regulator, and the government.

BSE's IPO Success

While NSE's IPO has been delayed, its competitor, BSE Limited, successfully went public in early 2017. BSE's IPO bidding was held from January 23 to 25, and the shares were listed on February 3, 2017. As of now, BSE stock is trading at Rs 2,417.00, up Rs 13.00 or 0.54%. 

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New Hope for NSE’s IPO

Now, in May 2025, there is fresh hope that NSE’s IPO might finally happen. According to Bloomberg, NSE is offering Rs 1,000 crore (Rs 10 billion or $118 million) to settle its long-standing dispute with SEBI.

Sources say SEBI is likely to accept the offer, which could clear the final obstacle for the IPO.

Investor interest in NSE remains strong. A LinkedIn post by US-based Drew Investments revealed that NSE’s private market valuation has jumped from $36 billion in September 2024 to $50 billion in May 2025.

Current Status and Outlook

As of May 2025, NSE's IPO remains in limbo. While SEBI and NSE continue to work on resolving the outstanding issues, no definitive timeline has been provided for the IPO. The exchange's ability to address governance concerns, comply with regulatory requirements, and restore investor confidence will be crucial in determining the future of its public listing.

Investors and stakeholders await further developments, hoping that India's premier stock exchange can overcome its challenges and successfully enter the public market.