The National Stock Exchange (NSE), India’s largest stock exchange, has finally moved a step closer to its much-awaited stock market debut. After nearly a decade of delays due to regulatory and legal issues, NSE filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on June 17, 2026.
The proposed IPO is expected to be one of the biggest public offerings in India’s history. Market estimates suggest the issue could raise between ₹20,000 crore and ₹30,000 crore, making it one of the most closely watched listings in the country.
The filing marks an important milestone for NSE, which continues to play a key role in India’s financial markets and remains the world’s largest equity derivatives exchange by trading volume.
IPO Will Be Entirely an Offer for Sale
NSE’s IPO will be structured completely as an Offer for Sale (OFS). This means the exchange will not issue any new shares and will not receive any money from the public issue. Instead, existing shareholders will sell a part of their holdings.
According to the DRHP, up to 14.89 crore equity shares, representing around 6.02% of NSE’s paid-up capital, will be offered through the IPO. The exchange has also reserved up to 5% of the post-offer share capital for eligible employees.
State Bank of India (SBI) will be the biggest seller in the issue. Other shareholders planning to sell shares include MS Strategic (Mauritius), Canada Pension Plan Investment Board, Aranda Investments, Bank of Baroda, Stock Holding Corporation of India, General Insurance Corporation, and New India Assurance.
One major shareholder that is reportedly not participating in the sale is Life Insurance Corporation of India (LIC).
Since regulations do not allow a stock exchange to list its shares on its own platform, NSE is expected to list on the Bombay Stock Exchange (BSE). Market experts believe the listing could happen before the end of 2026, subject to regulatory approvals.
Several domestic and international investment banks have been appointed to manage the public issue.
Strong Financials Add to Investor Interest
NSE is entering the public market with strong financial performance. For FY26, the exchange reported a consolidated total income of ₹18,713 crore and a consolidated profit after tax of ₹10,302 crore.
In the January-March quarter alone, NSE posted total income of ₹5,360 crore and profit after tax of ₹2,871 crore.
The board has recommended a dividend of ₹35 per share for FY26, including a special dividend of ₹10 per share.
The exchange has also seen rapid growth in its investor base. As of March 2025, NSE had 11.3 crore unique registered investors, while the total number of registered accounts crossed 21 crore.
NSE continues to dominate the derivatives market. During FY26, more than 36 billion contracts were traded on the exchange, helping it maintain its position as the world’s largest equity derivatives exchange.
The exchange also contributed nearly ₹59,186 crore to the government exchequer during FY26.
To support future growth and improve its technology infrastructure, NSE plans to invest between ₹520 crore and ₹550 crore over the next two years. The investment will be used to add around 2,000 new co-location server racks to meet growing demand from brokers and market participants.
Legal Issues and Regulatory Changes Remain Key Risks
NSE’s IPO journey has been delayed for years because of the co-location case that first came to light in 2015.
The controversy involved allegations that certain brokers received faster access to NSE’s market data systems, giving them an unfair advantage in trading. The case led to multiple investigations, regulatory actions, and legal proceedings over the years.
To resolve the matter and clear the way for its listing, NSE has submitted a revised settlement proposal worth more than ₹1,400 crore. While the proposal has moved forward in the regulatory process, the final settlement is expected to require approval from the Supreme Court because related proceedings are still pending.
Apart from legal challenges, NSE has also highlighted risks from recent regulatory changes in the derivatives market. SEBI has introduced stricter rules for futures and options trading, including larger contract sizes and restrictions on weekly expiry contracts.
These changes have affected trading volumes across the industry and could impact NSE’s business going forward.
At the same time, rival exchange BSE has gained market share in the derivatives segment, increasing competition in an area that has traditionally been a major revenue source for NSE.
Despite these challenges, the filing of the DRHP is a significant step for the exchange. If all approvals are received, NSE’s IPO could become one of the biggest and most important stock market listings in India’s history.