Ashishkumar Chauhan, the MD and CEO of the National Stock Exchange (NSE), stated that the company is seeking permission from capital markets regulator Sebi to begin the much expected process of an initial public offering (IPO). Furthermore, he stated that only knowledgeable investors should enter such markets and that regular investors should refrain from investing in high-risk derivatives.
Nine out of ten traders lose money on derivatives deals, per a previous Sebi report. Chauhan responded to a question on the NSE's IPO plans on Thursday by saying, "A revised Draft Red Herring Prospectus (DRHP) will be submitted as soon as we receive approval from Sebi."
Currently listed on the NSE, the competitor of the NSE, BSE (previously Bombay Stock Exchange), launched its initial public offering (IPO) in 2017.
Notably, Chauhan led BSE as CEO when it listed. Plans for the NSE to list were shelved when Sebi launched an investigation into purported governance failings at the exchange and among some of its previous officials.
It was claimed that the exchange granted some trading members special access and abused its co-location facility.NSE had already submitted draft documents to Sebi for its much expected IPO earlier in December 2016. It was anticipated that the first share sale will bring approximately Rs 10,000 crore.
The current shareholders intended to use the OFS (Offer-for-Sale) process to sell 22% of their shares to the general public
Vikram Limaye, the MD and CEO of the NSE at the time, stated to PTI once more in 2020: "We have approached Sebi to seek its approval for the IPO, and after that, we will start the process of appointing merchant bankers, who will help the exchange file draft prospects for the IPO.
"There are now 9 crore registered investors on the NSE, representing over 99 percent of India's landmass; just 33–35 PINCODES are currently excluded.
The previous five years have witnessed a greater increase in the investor base, which has been made possible by the quick rise in digitisation, growing investor knowledge, financial inclusion, and robust market performance.
