By Anjana Therese Antony
The Securities and Exchange Board of India (Sebi) has given an in-principle approval for the resolution of the National Stock Exchange’s (NSE) unfair market access case, Tuhin Kanta Pandey, chairman, Sebi, said on Thursday.
“In principle, we agree to the settlement,” Pandey told reporters on the sidelines of the AIBI Annual Convention adding that the case is being processed by various SEBI committees.
The market regulator’s approval will clear the way for NSE’s initial public offering (IPO) allowing it to start the paperwork. The country’s biggest stock exchange is expected to sell a stake of 2.5%.
Clearing the Listing Path
Last Saturday, the SEBI chief had said the no-objection certificate for the stock exchange’s IPO is in advanced stages and will likely be issued this month.
On Thursday, Pandey said the regulator is in discussions with the Ministry of Corporate Affairs to consider whether it should start regulating the unlisted market.
“Sebi first needs to examine whether it has the legal authority to regulate companies that are not listed on the stock exchanges and how far such regulation can extend,” he said. The main concern, he said, was the big differential between the prices in the unlisted market and final IPO valuation.
Investors in the unlisted share market usually buy these shares through private deals, employee stock options or other intermediaries.
Earlier Pandey observed that the overdependence of the Indian equity market on foreign portfolio investments has reduced considerably adding the markets are more independent and stable now.
In 2025, FPIs net sold shares worth more than ₹1.65 lakh crore while domestic investors held up the markets buying equities worth over ₹7.88 lakh crore.
In the September 2025, quarter, FPIs’ ownership in NSE- listed companies fell to an over 15-year low of 16.9% while the share of domestic mutual funds in NSE-listed companies rose to a record high of 10.9%.
The SEBI chief noted that FPIs still have significant participation in IPOs. “A strong fundraising pipeline exists – potentially, issuers can raise ₹1.5 trillion going ahead. We are globally ranked first in terms of number of IPOs and third in terms of value of IPOs,” Pandey said.