MD and CEO Ashish Chauhan of the National Stock Exchange (NSE) disclosed that while the exchange is prepared to initiate its Initial Public Offering (IPO) journey, it awaits the green signal from the capital markets regulator SEBI. Speaking in Mumbai on April 4, Chauhan conveyed that NSE is poised to reapply for the IPO once SEBI is satisfied with the exchange’s operations. Reiterating a stance expressed in 2023, he stated, ‘As and when SEBI becomes more comfortable, they will tell us to apply (for IPO) and we will go ahead.’
NSE’s listing ambitions have faced setbacks over the years due to corporate governance issues, including the involvement of a former executive in the 2015 co-location scam and multiple technological glitches. Despite these challenges, NSE remains resolute in its pursuit of going public, contingent upon regulatory approval.
In light of its Q3FY24 earnings call, international brokerage firm Jefferies reported that NSE’s management dismissed media speculation regarding IPO timelines, citing a lack of clarity on the matter.
According to a December 2023 report by CNBC-TV18, SEBI emphasized the need for NSE to strengthen its technological infrastructure, refine corporate governance practices, and settle outstanding legal issues. This directive followed a significant trading halt in 2021, attributed to malfunctions in NSE’s mainframe and disaster recovery sites, which prompted heightened regulatory scrutiny from SEBI.
The National Stock Exchange (NSE) announced an 8 percent year-on-year increase in its net profit for the December quarter, reaching Rs 1,975 crore. Consolidated revenue from operations surged by 25 percent year-on-year to Rs 3,517 crores during Q3.
In addition to trading revenue, the growth in topline figures was bolstered by various other sources such as data centre and connectivity charges, clearing services, listing services, index services, and data services. Notably, the net profit margins for Q3FY24 stood at an impressive 51 percent.