The much-anticipated initial public offering (IPO) of National Stock Exchange of India Ltd (NSE) will “see the light of day”, reiterated Tuhin Kanta Pandey, chairperson of the Securities and Exchange Board of India (Sebi), on Friday, providing the clearest signal yet on the public issue.
“Unless you want my tenure to be too short, it will see the light of the day,” Pandey quipped when asked if the NSE IPO would happen during his tenure at the Business Standard BFSI Insight Summit 2025 in Mumbai.
First proposed in 2016 to sell a 22% stake and raise ₹10,000 crore, the IPO is yet to materialize due to the lack of a mandatory no-objection certificate (NOC) from Sebi. This certificate is crucial for the exchange to formally proceed with its draft red herring prospectus (DRHP) and begin the listing process.
While no specific timeline was given, the assertion suggests that hurdles holding up the listing are being cleared.
Pandey was speaking at a fireside chat where he touched upon a wide range of issues, from the booming derivatives market to the unwavering confidence of foreign investors in India.
On derivatives and FPI exodus
Addressing the “sensitive subject” of equity derivatives, particularly the surge in weekly options trading, Pandey acknowledged the regulator’s own studies, which highlight significant losses for retail investors in the futures and options (F&O) segment.
He described Sebi’s strategy as a “calibrated approach” that followed market-wide consultations, aimed at containing the irrational exuberance of investors without stifling the market.
Sebi has rolled out a series of measures, some of which took effect in May, July, and October, with more scheduled for 1 December. These measures include limiting the choice of expiry days to two and allowing only one index for expiry on a given day.
However, the chairperson ruled out any drastic measures. “Can we just shut down the market just like that? This is a very important question,” he stated, emphasizing the large number of participants in the equity derivatives space.
He reassured the industry that any further steps would be taken only after public consultation and more data analysis to ensure a balanced outcome.
He dismissed concerns over recent foreign capital outflows, stating that the confidence of foreign portfolio investors (FPIs) in India remains high. Based on his interactions with overseas investors, he said their interest lies in both the long-term and short-term growth prospects of the country.
He put the recent sales by foreign investors into perspective, noting that the $4-5 billion they withdrew was “not very significant” when compared to their $900 billion investment in the country.
He explained that these investors are always looking for the best returns and may move money between countries to take advantage of profit opportunities. He also mentioned that the regulator is working to make the investment process simpler for them.
In his keynote address, he highlighted the Indian capital market’s impressive growth, with the number of unique investors swelling from around 40 million in 2018-19 to over 13.5 million today. Market capitalization has similarly jumped from 69% of GDP in 2015-16 to about 129% today. “These strides represent more than just statistics. They symbolize confidence—the confidence of investors and stakeholders in a transparent, efficient, and resilient market ecosystem,” he said.
Pandey also highlighted Sebi’s strong stance against fraudulent “finfluencers”, pointing out that takedown actions against misleading content now number around 5,000 every month. “So far, we have done more than 100,000 takedowns,” he said, warning that misleading investors will not be tolerated.
Additionally, Pandey spoke about the need to simplify regulations, citing the proposed review of the Sebi Mutual Fund Regulations. Regarding mutual fund expense ratios, he said the aim is to balance the interests of the industry and investors by bringing more transparency into costs.