India's National Stock Exchange prepares IPO filing as SEBI eyes market reforms

The National Stock Exchange (NSE) is set to file its draft red‑herring prospectus for an offer‑for‑sale public issue on June 15‑16, after the board approved the plan in February and SEBI granted a no‑objection certificate earlier this year. The IPO, valued at over Rs 5 lakh crore, will involve existing shareholders such as Life Insurance Corporation of India (10.72% stake) and State Bank of India (around 7.5%). Foreign investors including Temasek‑linked Aranda Investments and the Canada Pension Plan Investment Board also hold significant stakes. This filing follows a decade‑long delay caused by regulatory concerns over governance and the co‑location controversy.

Separately, SEBI is expected to approve a package of reforms at its June 19 board meeting. The proposals include reviving exchange‑based share buybacks with tighter safeguards, fast‑tracking approvals for alternative investment funds, easing entry for bond‑platform providers to broaden retail participation in fixed‑income markets, and relaxing intraday borrowing limits for mutual‑fund managers to improve liquidity management. The reforms aim to enhance market efficiency, expand investor access, and strengthen safeguards against misuse.