NSE IPO: Exchange didn't move an application to trade on its own platform, says CEO Ashish Chauhan

National Stock Exchange has not applied to Sebi for permission to trade its shares on its own platform, NSE Managing Director and CEO Ashish Chauhan said, clarifying a key operational point ahead of the exchange’s much-awaited IPO.

If an exchange’s shares trade on its own platform, it can raise questions around governance and conflict of interest. The exchange is responsible for running the trading system, monitoring trades, ensuring fair price discovery and acting as the first level of market supervision. If its own stock trades on the same platform, the exchange would also be overseeing trading activity in its own shares.

That is why such structures require regulatory comfort and clear safeguards. The concern is not only about actual conflict, but also the perception of self-supervision. In market infrastructure businesses, trust and neutrality are central to credibility.


Chauhan’s statement indicates that NSE is not pushing this issue ahead of the IPO. Instead, the focus remains on the public offer, the shareholder sale and the final pricing.

NSE IPO details
NSE’s IPO will be entirely an offer for sale. This means the exchange will not receive any fresh money from the issue. Existing shareholders will sell part of their stake to public investors.

Chauhan said NSE had invited shareholders to tender shares before filing the draft red herring prospectus. He also said bankers advised the exchange on pricing, and the size of the IPO was based on the shares tendered by shareholders on the day of the updated draft red herring prospectus.

The exchange had earlier proposed an OFS of up to 14.89 crore shares. The updated filing has reduced the number of shares on offer to about 12.64 crore.

The IPO size is now expected to be around Rs 22,500-23,500 crore, lower than the earlier expectation of about Rs 30,000 crore. The OFS is likely to represent around 5.25% of NSE’s paid-up capital, compared with about 6% planned earlier.

NSE is launching its IPO on September 17. The issue will open for anchor investors on September 16, with listing expected on September 24.

Pricing in focus
The biggest focus for investors will be the final price band. NSE shares have traded in the unlisted market in the range of Rs 1,950-2,200 over the last one year. The IPO is priced around Rs 1,700-1,785 per share.

At the upper end of the expected band, NSE could be valued at around Rs 4.4 lakh crore. Even after the cut in issue size, it will remain one of India’s largest IPOs.

NSEs IPO is one of the most awaited listings in India’s capital market. The exchange dominates India’s equity derivatives market and has a strong position in cash equities.

Its business is linked to trading volumes, transaction charges, listing fees, market data, clearing-related income and market infrastructure services. The exchange benefits from scale, network effects and India’s expanding investor base.

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