NSE denies seeking finance ministry help over Sebi IPO approval delay

NSE denies reports it sought finance ministry help after Sebi delayed IPO nod; says no government communication in 30 months, rejects claims of regulatory bias

The National Stock Exchange (NSE) on Thursday refuted claims that it had approached the Ministry of Finance for assistance in obtaining regulatory clearance for its long-pending initial public offering (IPO). 

Responding to a media report that suggested the exchange had reached out to the Centre over a standoff with the Securities and Exchange Board of India (Sebi), NSE clarified that there had been no communication with the Union government on this matter in the last 30 months. “The story is denied by NSE,” the exchange posted on X.

 

Clarification - Denial of a Reuters Story on NSE IPO  A news agency - Reuters has published a story that NSE has sought intervention from Government relating to NSE IPO.  The story is denied by NSE.  NSE has not had any correspondence with Government of India in last 30 months…

— NSE India (@NSEIndia) May 8, 2025

  Report claims NSE sought ministry’s intervention

Earlier in the day, news agency Reuters reported that NSE had written to the finance ministry after its March application for a ‘no objection certificate’ (NOC) from Sebi failed to progress. According to sources cited in the report, the letter urged the ministry to engage with Sebi’s new leadership and resolve the regulatory concerns delaying the IPO. 

 

This marks a rare escalation in the long-standing standoff between the country's largest stock exchange and its primary market regulator.

 

IPO efforts delayed since 2016

NSE, which operates the world’s largest derivatives exchange, has been attempting to go public since 2016. Its efforts have been hampered by regulatory hurdles, including unresolved legal matters and governance-related concerns, the report said. In contrast, its domestic peer BSE Ltd is already listed. 

A successful listing would provide an exit route for key shareholders such as the Life Insurance Corporation of India, State Bank of India, Morgan Stanley, and the Canada Pension Plan Investment Board.

 

Exchange has approached govt in the past

While NSE denied any recent outreach, sources told Reuters the exchange has previously sought government support — including in November 2019, twice in 2020, and again in August 2024. 

“The letter requests the Ministry of Finance to engage with the newly appointed Sebi Chairman to address and resolve the concerns raised by Sebi regarding NSE’s pending public offer,” said a source familiar with the communication.     

 

Sebi cites governance issues

Sebi Chairman Tuhin Kanta Pandey recently said that the regulator is addressing the issues around NSE’s IPO but prioritises public interest over commercial considerations. 

“Different departments at Sebi had raised concerns,” the Reuters report quoted a source as saying. “Until all departments are satisfied that issues have been addressed, an NOC is unlikely to be issued.” 

Among the issues flagged are governance lapses, including a delay in appointing a board chairman. NSE, in its letter to the finance ministry, reportedly rejected these concerns and attributed the delay to Sebi’s hold-up in approving a recommended candidate back in 2022.

 

Allegations of regulatory bias

The exchange also questioned Sebi’s objectivity in recent decisions that it claims have disproportionately impacted NSE compared to BSE. It cited the regulator’s stance on futures and options trading rules and a proposal mandating exchanges to reduce their stakes in clearing corporations. 

NSE argued in its communication that such moves could raise operational costs and potentially affect market stability.