The National Stock Exchange (NSE) of India has been a cornerstone of the country’s financial ecosystem, and its potential initial public offering (IPO) has been a topic of anticipation for nearly a decade. Recent developments suggest that this much-delayed event might finally be gaining traction. SEBI Chairman Tuhin Kanta Pandey, in his first board meeting as the head of the regulatory body, addressed the NSE IPO, stating, “We will look into the issues around it and apply our mind to take it forward.” This cautiously optimistic remark has reignited hope among investors and market watchers who have been awaiting the listing since the NSE’s first attempt in 2016 was derailed by the co-location controversy. With the NSE’s valuation soaring to ₹4.7 lakh crore according to the 2024 Burgundy Private Hurun India 500 list, the stakes—and expectations—are higher than ever.

The road to the NSE’s IPO has been fraught with challenges. The 2016 co-location scandal, which involved allegations of unfair access to trading systems, significantly damaged the exchange’s reputation and halted its listing plans. Since then, governance lapses and regulatory hurdles have kept the IPO in limbo, even as the NSE worked to restore trust and streamline operations. Last year, NSE CEO Ashish kumar Chauhan indicated readiness to file the draft red herring prospectus (DRHP), pending SEBI’s approval. Pandey’s recent comments signal that the regulator is now prepared to reassess the proposal, though he refrained from committing to a specific timeline. This measured approach reflects SEBI’s intent to balance market enthusiasm with rigorous oversight, ensuring that past issues don’t cast a shadow over the exchange’s public debut.

For investors, the NSE IPO represents a rare opportunity to own a piece of India’s largest stock exchange, which has seen its influence grow alongside the nation’s booming capital markets. The growing interest in NSE shares is evident from the sharp rise in its shareholder base, which has expanded significantly over recent years. From just 1,941 shareholders recorded on December 31, 2021, the number surged to 11,274 by December 2023 and reached nearly 20,500 by December 31, 2024, reflecting strong investor enthusiasm for the exchange.

Coinciding with this trend, a notable improvement in the share transfer process begins today. Previously, transferring NSE shares between shareholders could take over two months, but now, thanks to the "defreezed" status of the shares’ unique security code—known in the market as the International Securities Identification Number (ISIN)—this process has been streamlined to take less than a week.