India’s largest stock market exchange and the world’s fifth biggest one is closer than ever to one of the most eagerly awaited public listings in history. The National Stock Exchange (NSE) is expected to make its stock market debut in September 2026, after nearly a decade of delays, if it is approved by regulators and markets.
The Draft Red Herring Prospectus (DRHP) of NSE is expected to be approved by the middle of August, as per sources from the Securities and Exchange Board of India (SEBI). That will allow NSE to launch its IPO and will remove the uncertainty of the listing process that has persisted for a long time.
Nearly a Decade-Long Wait Nears an End
The NSE first submitted its IPO proposal in 2016, but the listing process stopped because of the co-location scandal. The allegations, which started in 2015, claimed that high-frequency traders were given preferential access to NSE's co-location servers, enabling them to receive market data fractions of a second earlier than others and gain a competitive advantage in trading.
The regulatory investigation that followed significantly delayed the IPO process. NSE has been working with SEBI for years now to resolve those challenges and improve governance and compliance standards while addressing several legacy issues.
Industry experts believe the exchange has addressed most of the regulatory issues and it is on the way to a listing.
SEBI approval is expected in August
SEBI is expected to clear the DRHP by mid-August 2026, sources say. Once approved, the exchange can proceed with the IPO process.
NSE has already started conducting international roadshows to gauge investor interest. The exchange is also talking with domestic institutional investors to assess the market appetite and facilitate price discovery before the public issue.
These investor interactions will help guide the final valuation, issue size, and pricing strategy. The timeline will be determined by the market and investor demand, however, officials said.
Co-Location Settlement Nearing Completion
Another significant milestone before the IPO is the expected resolution of the long-standing case of NSE co-location.
According to reports, SEBI will issue its final settlement order soon, and the exchange is expected to pay a settlement amount exceeding ₹1,400 crore.
The settlement is seen as one of the final steps in closing one of the largest regulatory chapters in Indian capital market history. Investors are expected to be satisfied with the resolution and proceed with the listing, market watchers say.
IPO to be entirely an Offer for Sale
Unlike other public offerings where companies raise new capital, the NSE IPO will be an Offer for Sale (OFS).
The exchange has filed plans to offer about 14.89 crore equity shares, all of which will be sold by existing shareholders. As an OFS, NSE itself will not receive any proceeds from the IPO.
Among the selling shareholders, State Bank of India (SBI) plans to sell 2.475 crore shares, making it the largest seller in the issue.
Interestingly, Life Insurance Corporation of India (LIC), which is currently the largest shareholder in NSE, has decided not to participate in the offer and will instead retain its stake in the exchange.
Strong Investor Interest Expected
NSE is the market leader in India and accounts for most equity derivatives and cash market trading. Its stable profitability, state-of-the-art tech infrastructure, and an expanding investor base will certainly make the IPO one of the biggest market events of the year.
Retail and institutional investors will be watching the valuation and pricing details as soon as the issue receives regulatory approval, analysts say.
The listing is also expected to unlock value for long-term shareholders who have waited years for an exit opportunity.
What happens next?
If SEBI approves in August and the remaining regulatory formalities are completed on schedule, NSE could be listed on the stock exchanges in September 2026.
A successful listing would mark the end of a ten-year regulatory journey and a landmark moment for India's financial markets. Investors will now be anxious to know SEBI's decision, the co-location settlement, and IPO pricing before the exchange makes its historic debut.
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