The markets regulator’s decision to enable the National Stock Exchange to resolve the Trading Access Point dispute has brought the exchange’s dream of approval for an initial public offering closer to reality.
Trading members utilize Trading Access Point, a mechanism introduced by the NSE in 2008, to manage their connections to the exchange. It debuted substitutes including “Direct Connect” in 2016 and “Trimmed TAP” in 2013. TAP was still in use for securities financing until 2020 and for stock trading until 2019. It was claimed, meanwhile, that the exchange had neglected to implement the necessary corrective actions to stop TAP system bypassing.
If authorized, NSE’s IPO may rank among the nation’s biggest primary market offerings. The NSE, which has the highest volume of any derivatives exchange in the world, wanted to be listed in 2016 but was denied due to a protracted legal dispute over fair access for its trading members. Sebi fined NSE Rs 1,100 crore in April 2019 for failing to provide fair access and for not returning its listing paperwork.
The unlisted market has seen little change in NSE shares despite the hype surrounding the IPO. Larger lots are reportedly trading for Rs 5,000–5,500 a share, while smaller lots are selling for Rs 6,000–6,200 each, according to dealers active in the market. Purchasing NSE unlisted shares, however, requires a number of regulatory permissions.
NSE Market Valuation
In the unlisted market, the NSE is currently valued at around Rs 2.7 lakh crore. Indian Life Insurance Corporation According to a Reuter’s article, State Bank of India, Canada Pension Plan Investment Board, Tiger Global, and Morgan Stanley are a few of the present NSE stakeholders that may sell their interest in the NSE IPO.
After LIC (Rs 21,000 crore) and Paytm (Rs 18,300 crore), NSE’s initial public offering (IPO) is expected to generate approximately Rs 28,000–30,000 crore. The options trading market was a major factor in the NSE’s 39% year-over-year increase in consolidated profits, which came in at Rs 2,56.7 crore for the June 2024 quarter. Revenue reached Rs 14,780 crore, up 25% YoY.
