NSE IPO: Board Meeting on February 6 to Start Long-Awaited Listing Process

The meeting is expected to formally initiate the IPO process, marking NSE’s transition from regulatory clearance to operational execution of the listing plan.

Formation of Specialised IPO Committee

One of the key agenda items of the board meeting is the constitution of a dedicated IPO committee. According to sources cited by PTI, this specialised panel will serve as the central authority overseeing the entire listing exercise.

The committee is expected to define the procedural roadmap for the IPO, including framing the criteria for appointing merchant bankers and legal advisors. These advisors will be responsible for preparing the Draft Red Herring Prospectus (DRHP), a crucial document required for regulatory approval and investor disclosures.

The committee is likely to comprise largely independent directors, ensuring governance oversight as NSE moves towards becoming a publicly listed entity.

In addition to IPO-related decisions, the NSE board will also review and approve the exchange’s unaudited financial results for the quarter and nine-month period ending December 2025. These numbers are significant, as they may form the financial basis for the DRHP, depending on the filing timeline.

Regulations allow companies to file a DRHP using financials that are not older than six months, giving NSE flexibility in choosing whether to rely on September or December quarter audited numbers.

A Decade-Long Regulatory Journey

NSE’s IPO ambitions date back to 2016, when it first filed draft offer documents to raise around ₹10,000 crore. However, SEBI withheld approval due to governance concerns and the high-profile co-location controversy, where certain brokers were accused of receiving preferential access to NSE’s trading systems.

The matter led to prolonged litigation, regulatory probes, and even proceedings in the Delhi High Court, effectively stalling the exchange’s listing plans for years.

Settlement with SEBI Clears the Path

A major breakthrough came in 2025, when NSE filed a settlement application with SEBI to resolve the co-location and dark fibre cases. The exchange agreed to pay around ₹1,400 crore to settle the charges.

In its Q2 FY26 financials, NSE made a provision of ₹1,297 crore, over and above the ₹100 crore already deposited with SEBI in compliance with a Securities Appellate Tribunal (SAT) order. This settlement paved the way for SEBI to grant the long-awaited NOC, even before formal clearance from the High-Powered Advisory Committee (HPAC).

NSE Financial Performance Snapshot

For the September quarter (Q2 FY26), NSE reported a 33% year-on-year decline in consolidated profit after tax (PAT) to ₹2,098 crore, compared with ₹3,137 crore in the same quarter last year.

Excluding the settlement-related provision, adjusted PAT stood at ₹3,396 crore, reflecting a 16% sequential increase. Consolidated total income for the quarter declined 17% YoY to ₹4,160 crore.

During the first half of FY26, NSE contributed ₹28,308 crore to the exchequer through STT, CTT, stamp duty, SEBI fees, income tax, and GST, underlining its central role in India’s financial ecosystem.

With regulatory clearance now in place, the February 6 board meeting is expected to mark the beginning of the final chapter in NSE’s long and closely watched journey to the public markets.