{"id":123091,"date":"2026-09-06T10:51:26","date_gmt":"2026-09-06T05:21:26","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=123091"},"modified":"2026-09-06T12:59:45","modified_gmt":"2026-09-06T07:29:45","slug":"nse-ipo","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/nse-ipo\/","title":{"rendered":"NSE IPO &#8211; India\u2019s Largest Public Issue and the Debate Over Self-Trading"},"content":{"rendered":"<h2 style=\"text-align: justify;\"><b>NSE IPO Latest News<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">After nearly a decade of regulatory delays, the National Stock Exchange (NSE) is poised to launch its Initial Public Offering (IPO), potentially raising around \u20b930,000 crore, which could make it the <\/span><b>largest IPO in India\u2019s history<\/b><span style=\"font-weight: 400;\">.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The proposed public listing has generated considerable interest among institutional and retail investors.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A key unresolved issue is whether NSE will eventually be permitted to trade its own shares on its platform, despite regulations prohibiting an exchange from listing itself.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Regulatory Hurdle &#8211; The Self-Listing Problem<\/b><\/h2>\n<ul>\n<li aria-level=\"1\"><b>Conflict of interest:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Under existing SEBI regulations, a stock exchange cannot list its own shares on its platform.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Exchanges function as <\/span><b>first-level regulators<\/b><span style=\"font-weight: 400;\"> for entities listed and traded on them.\u00a0<\/span><\/li>\n<li><b>Self-listing <\/b><span style=\"font-weight: 400;\">could therefore create a conflict of interest, as an exchange would effectively regulate itself. NSE&#8217;s proposed solution is the Permitted-to-Trade (<\/span><b>PTT<\/b><span style=\"font-weight: 400;\">) route.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Under this mechanism &#8211;<\/span>\n<ul>\n<li><span style=\"font-weight: 400;\">NSE shares would initially be listed on BSE.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">NSE would subsequently submit a proposal to SEBI seeking permission for its shares to trade on NSE without being listed there.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">BSE would remain the primary listing platform and bear the principal compliance responsibility.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">NSE would establish standard operating procedures for surveillance, price bands and other trading functions to mitigate conflicts of interest.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">If SEBI approves the proposal, NSE shares could trade on NSE through the PTT mechanism.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>Regulatory precedent:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">The proposal faces a significant precedent. <\/span><b>For example,<\/b><span style=\"font-weight: 400;\"> SEBI rejected BSE&#8217;s similar PTT proposal when BSE listed in 2017, citing concerns over conflict of interest.<\/span><\/li>\n<li><b>SEBI <\/b><span style=\"font-weight: 400;\">Chair Tuhin Kanta Pandey has indicated that the regulator has not yet substantively considered the issue.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">BSE MD Sundararaman Ramamurthy has opposed the idea, arguing that self-trading is currently not supported by the regulatory framework.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Why Trading NSE Shares on NSE Matters<\/b><\/h2>\n<ul>\n<li aria-level=\"1\"><b>Liquidity and market reach:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">NSE dominates India&#8217;s equity and derivatives markets, accounting for approximately &#8211;<\/span>\n<ul>\n<li><span style=\"font-weight: 400;\">93% of cash-market turnover<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Nearly the entire futures premium<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Around 75% of options premium<\/span><\/li>\n<\/ul>\n<\/li>\n<li><span style=\"font-weight: 400;\">Allowing NSE shares to trade on its own platform could therefore provide them with greater liquidity, visibility and investor participation.<\/span><\/li>\n<\/ul>\n<\/li>\n<li aria-level=\"1\"><b>Index inclusion and passive flows:<\/b>\n<ul>\n<li><span style=\"font-weight: 400;\">Trading on NSE could also facilitate inclusion in major NSE indices such as the Nifty 500 and Nifty Financial Services.\u00a0<\/span><\/li>\n<li><span style=\"font-weight: 400;\">Such inclusion could generate additional demand through passive mutual funds and index-tracking investments.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The PTT mechanism is <\/span><b>not unprecedented in practice<\/b><span style=\"font-weight: 400;\"> &#8211; around 250 companies that are not listed on NSE are nevertheless permitted to trade on its platform.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>IPO Timing and Valuation<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The NSE IPO arrives amid a <\/span><b>revival in India&#8217;s primary market<\/b><span style=\"font-weight: 400;\"> after a period of weakness linked partly to the West Asia conflict and concerns surrounding the AI-driven global market environment.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Around 73% of funds raised through mainboard IPOs in 2026 had come during July and August, highlighting the recent acceleration in IPO activity.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Despite several other large issues competing for investor attention, NSE&#8217;s scale, market dominance and brand value are expected to distinguish its offering.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Brokerages have estimated a <\/span><b>potential price-to-earnings (P\/E) multiple<\/b><span style=\"font-weight: 400;\"> of 35\u201349 times FY26 earnings.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The final valuation will depend on the IPO price band, expected to be announced around mid-September.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Reports suggest that mutual funds may be comfortable with a price of roughly \u20b91,800 per NSE share, implying a P\/E multiple of approximately 43\u201345 times.<\/span><\/li>\n<\/ul>\n<h2 style=\"text-align: justify;\"><b>Significance for Investors and the Economy<\/b><\/h2>\n<ul style=\"text-align: justify;\">\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">NSE&#8217;s IPO represents more than a large capital-market transaction.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It marks the potential <\/span><b>public-market transformation<\/b><span style=\"font-weight: 400;\"> of one of India&#8217;s most systemically important financial-market institutions.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Its attractiveness rests on India&#8217;s &#8211;<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Rising financialisation of household savings<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Increasing retail participation in capital markets<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Low penetration of equity investment relative to the size of the population<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Growing derivatives and digital trading ecosystem<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Expanding role of market infrastructure institutions<\/span><\/li>\n<\/ul>\n<\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">However, NSE&#8217;s recent revenue and profit pressures, partly associated with regulatory changes in the derivatives segment, highlight the importance of balancing its growth potential against valuation and regulatory risks.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The <\/span><b>broader policy challenge<\/b><span style=\"font-weight: 400;\"> is to balance market efficiency and competition with regulatory neutrality, transparency and prevention of conflicts of interest.<\/span><\/li>\n<\/ul>\n<p style=\"text-align: justify;\"><b>Source: <\/b><a href=\"https:\/\/indianexpress.com\/article\/explained\/nse-ipo-public-issue-india-10864746\/\" target=\"_blank\" rel=\"nofollow noopener\"><b>IE<\/b><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>NSE IPO could raise around \u20b930,000 crore, potentially making it India\u2019s largest-ever public issue.<\/p>\n","protected":false},"author":19,"featured_media":123113,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[60,10055,22,59],"class_list":["post-123091","post","type-post","status-publish","format-standard","has-post-thumbnail","category-upsc-mains-current-affairs","tag-mains-articles","tag-nse-ipo","tag-upsc-current-affairs","tag-upsc-mains-current-affairs","no-featured-image-padding"],"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/123091","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/19"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=123091"}],"version-history":[{"count":4,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/123091\/revisions"}],"predecessor-version":[{"id":123112,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/123091\/revisions\/123112"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/123113"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=123091"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=123091"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=123091"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}