Sebi extends NSDL share listing deadline to July 31, 2025 for IPO prep

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Capital markets regulator Sebi has granted an extension for the listing of National Securities Depository Ltd (NSDL) shares until July 31, 2025, the depository announced.

This extension comes after the depository sought an extension from the Securities and Exchange Board of India (Sebi).

According to NSDL's statement, "Sebi, vide its letter dated March 28, 2025, has granted an extension for the listing of shares of NSDL on a recognised stock exchange until July 31, 2025, subject to the conditions."  Market experts suggest that this extension will give NSDL ample time to ready itself for the Initial Public Offering (IPO) and to launch it when market conditions are more favourable.

Sebi granted its go-ahead to NSDL in September 2024 to float its IPO.

The depository had filed its draft papers in July 2023.

The proposed IPO will be a complete Offer For Sale (OFS) of over 57.2 million equity shares by existing shareholders, including the National Stock Exchange of India (NSE), State Bank of India (SBI), and HDFC Bank.

Since the public issue is entirely an OFS, NSDL will not receive any proceeds from the IPO.

NSDL, a Sebi-registered market infrastructure institution, has been a pioneer in India's securities market, offering a wide range of products and services.

It played a crucial role in the dematerialisation of securities in India following the introduction of the Depositories Act in 1996.

NSDL is India's first securities depository to reach Rs 500 trillion ($6 trillion) in the value of assets held in custody in September 2024.

This upcoming listing will make NSDL the country's second publicly traded depository after Central Depository Services (CDSL), which was listed on the NSE in 2017.

The listing of NSDL is crucial in order to comply with Sebi's ownership norms. These regulations require that no entity can hold more than 15 per cent of the shareholding in a depository company.

NSDL's principal shareholders, IDBI Bank and the NSE, are required to reduce their stake in the company to comply with Sebi's rule. Currently, IDBI holds 26.10 per cent and NSE owns 24 per cent stake in NSDL, which exceeds the permissible limit.

In the quarter ended December 2024, NSDL reported a 30 per cent increase in its consolidated net profit to Rs 85.8 crore from Rs 66.09 crore in the year-ago period.

The depository's total income also saw a 16.2 per cent growth to Rs 391.21 crore in the October- December quarter of FY25, up from Rs 336.67 crore in the corresponding quarter of the preceding fiscal year.