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NSE Eyes March IPO Filing After Years of Delays

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  Published in Stocks and Investing on Monday, February 16th 2026 at 16:24 GMT by reuters.com
      Locales: Maharashtra, INDIA

New Delhi, February 16th, 2026 - India's National Stock Exchange (NSE) is aggressively targeting an IPO filing by the end of March, sources confirm, marking a significant step forward after years of delays and regulatory hurdles. The move signals a renewed commitment to the government's disinvestment program and aims to capitalize on the currently buoyant Indian equity markets. However, the path to listing remains fraught with challenges, primarily centered around longstanding governance concerns that have plagued the exchange for years.

Originally envisioned as a landmark offering, the NSE's IPO journey has been repeatedly postponed due to scrutiny from the Securities and Exchange Board of India (SEBI), the nation's market regulator. The initial plans, floated several years ago, were derailed by investigations into alleged irregularities and lapses in governance practices. The delay has frustrated the government, which views the NSE's public listing as a crucial component of its broader strategy to unlock value from state-owned entities and bolster public finances.

The core of the regulatory focus has revolved around the actions of former director Ved Prakash Arya, whose conduct and alleged unauthorized trading activities triggered the initial investigation. SEBI has been meticulously reviewing the exchange's internal control mechanisms, risk management frameworks, and overall governance structure to ensure they meet the required standards. Sources indicate that the NSE has undertaken significant remedial measures, including strengthening its compliance department, implementing stricter internal oversight, and revising its code of conduct for directors and key managerial personnel.

While the NSE has not officially commented on the March deadline, the internal push to finalize the Draft Red Herring Prospectus (DRHP) is reportedly in full swing. Investment banks are actively involved in due diligence and valuation exercises. Analysts predict the IPO could be one of the largest in Indian history, potentially raising billions of dollars and rivaling the scale of offerings from other major Indian exchanges and corporations. Preliminary estimates suggest a valuation exceeding $10 billion, although this figure remains subject to market conditions and SEBI's final assessment.

Beyond Arya: A Broader Look at Governance Concerns

The scrutiny isn't solely limited to the Arya case. SEBI's investigation broadened to encompass concerns about potential conflicts of interest among key officials and inadequate disclosure norms. There were questions raised about the exchange's handling of algorithmic trading and co-location facilities, areas that are crucial for maintaining market integrity and preventing unfair advantages. The exchange has reportedly overhauled its technology infrastructure and implemented enhanced surveillance systems to address these vulnerabilities.

The upcoming IPO is anticipated to attract significant investor interest, both domestically and internationally. India's rapidly growing economy, rising disposable incomes, and increasing participation in capital markets make it an attractive destination for foreign institutional investors. The NSE, as the leading stock exchange in India, is uniquely positioned to benefit from this positive trend. However, investors will likely demand a high degree of transparency and assurance regarding the resolution of governance issues before committing their capital.

Implications for the Indian Market

The successful listing of the NSE would have far-reaching implications for the Indian financial landscape. It would provide increased liquidity and depth to the market, fostering greater competition and innovation. It would also set a benchmark for corporate governance standards among other exchanges and market participants.

Experts suggest the IPO could also pave the way for further consolidation within the Indian exchange space. The Bombay Stock Exchange (BSE), the other major stock exchange in India, has been exploring various strategic options, including potential partnerships or mergers. The successful listing of the NSE could incentivize the BSE to accelerate its own strategic initiatives.

The March filing target is ambitious, and achieving it will require close coordination between the NSE, SEBI, and other stakeholders. The lingering governance questions remain a significant hurdle. However, the government's strong backing, coupled with the NSE's apparent commitment to addressing regulatory concerns, suggests that the long-awaited IPO is finally within reach. Investors and market observers will be closely watching the developments in the coming weeks to see if the NSE can successfully navigate the final regulatory hurdles and embark on its journey as a publicly listed company.