One of the most awaited stock market debuts, NSE IPO, might have to wait longer. The last glimmer of hope, sparked by recent remarks from SEBI’s chairperson, seems to be fading. The exchange could face a delay of up to two years as the SEBI has flagged concerns that need immediate attention, said NDTV Profit report citing sources familiar to the matter.
SEBI hits pause on NSE IPO plans
According to an NDTV Profit report, SEBI has advised NSE to put its IPO plans on hold until it resolves certain regulatory issues. The market watchdog’s concerns revolve around governance, internal processes, and the need to reduce stakes in its clearing corporation. In addition to this, the remuneration of top executives has come under scrutiny.
As per the NDTV profit report, the letter from SEBI, sent in late February, coincided with the end of Madhabi Puri Buch’s tenure as the regulatory chief. With new SEBI Chairperson Tuhin Kanta Pandey at the helm, the matter is under review. “We don’t answer on specifics, but we’ll review the issues and determine how to move forward,” Pandey stated.
NSE’s listing plans – A never ending road
This delay is a major setback for NSE, which has been looking to go public for years. The exchange had first filed for an IPO in December 2016 and sought a No Objection Certificate from SEBI in August 2023.
While SEBI insists that these issues must be resolved before the IPO can proceed, industry insiders argue that some concerns raised by the regulator fall beyond its jurisdiction. For now, NSE must work closely with SEBI to navigate these regulatory hurdles, added the NDTV Profit report.