NSE IPO: 6 reasons why it's time for National Stock Exchange to go public

NSE IPO: Despite its pivotal role and a substantial shareholder base that surpasses most large-cap companies, NSE remains an unlisted entity

NSE IPO: The National Stock Exchange (NSE) stands as the cornerstone of India's capital markets, catalysing economic growth and financial innovation. Yet, despite its pivotal role and a substantial shareholder base that surpasses most large-cap companies, NSE remains an unlisted entity.

 

The time has come for the NSE to embrace public markets, and the reasons are compelling—both from a governance and a market development perspective.

 

1. Broad-based ownership: The case for democratisation

With over 100,000 shareholders, NSE already boasts a more widely held ownership base than many constituents of the Nifty 500. This broad base reflects deep investor interest and sets the stage for an even broader and more democratic participation, should NSE list. In a country where equity participation is growing rapidly, it is only fair that every Indian investor gets the opportunity to own a share of this national institution through transparent public markets.

 

2. Corporate governance

NSE has consistently set benchmarks for governance that are on par, if not ahead, of most listed companies in India. Its investor presentations are a model of clarity and disclosure, surpassing the standards seen in several Nifty and Sensex companies. Transparency in communication, accountability to stakeholders, and robust risk management practices position NSE as a natural fit for the listed space.   

 

3. Leadership compensation: The misplaced debate

Concerns around executive remuneration at NSE are significantly overblown. The CEO, Mr. Ashish Kumar Chauhan, was remunerated around ₹12 crore in the last fiscal, a figure that is modest by any benchmark, domestic or overseas, especially given the scale and importance of the institution. Moreover, a substantial portion is deferred variable pay. Comparatively, leaders at other large financial institutions—receive far higher compensation, often supplemented with generous ESOPs, which NSE does not offer.

 

4. The need for quality equity paper: A national asset for the masses

NSE is a national asset. Today, an enormous amount of investor capital is being funnelled into sub-par businesses at lofty valuations, in part due to the shortage of high-quality, blue-chip equity opportunities. Listing NSE would provide Indian investors with a chance to participate in the growth of a fundamentally sound, cash-generating institution—channelling savings into assets that genuinely deserve capital and boosting overall market health.

 

5. Bringing price discovery into the sunlight

Despite not being listed, price discovery for NSE shares occurs in a shadowy parallel market. This environment is rife with inefficiencies, poor liquidity, delivery defaults, and price renegotiations—all of which harm investor confidence and undermine orderly market functioning. Listing NSE would eliminate these risks, bringing transparency, better regulation, and true price discovery to one of the country’s most important assets. For the largest and most systemically important unlisted company to be denied a formal platform for price discovery is, frankly, an irony that needs to be addressed.

 

6. Regulatory concerns are not a showstopper

Some argue that issues around clearing corporations or conflict management are reasons for delay. Yet, two other exchanges in the country are listed, and similar questions have been managed in their cases—albeit imperfectly. Regulatory evolution is ongoing, and any remaining hurdles can and should be addressed pragmatically as part of the listing process, not as a reason for indefinite delay.

 

All said, the listing of the National Stock Exchange is not just a matter of institutional pride—it is an imperative for the continued evolution, transparency, and democratisation of India’s capital markets.

 

The market regulator, who keeps investor interest above everything else, has played an enabling role to facilitate fair price discovery and broad-based ownership of national assets. The NSE, by every objective metric, is ready for the next leap. It is time to bring this national asset into the sunlight, for the benefit of all Indian investors.

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Disclaimer: Jimeet Modi is CEO, SAMCO Ventures. The author owns unlisted shares of the National Stock Exchange. Views are personal.