SEBI clears path for NSE IPO, says no more obstacles

SEBI Chairman Tuhin Kanta Pandey said there are no remaining obstacles to the NSE’s IPO, pending submission of its DRHP. SEBI is also tightening scrutiny on market manipulation in SME IPOs and derivatives, promising strict action against irregularities

Mumbai: There is no obstacle remain for the National Stock Exchange (NSE) to proceed with its much-awaited IPO plans, SEBI Chairman Tuhin Kanta Pandey has said.

Speaking at the FE CFO Awards here, Pandey said there is no obstacle that will remain in the case of NSE IPO. However, when asked whether the NSE IPO could see the light of the day ahead of Diwali this year, the markets regulator chief declined to comment on any timeline.

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Earlier this month, Ashish Kumar Chauhan, Managing Director and CEO of NSE, said NSE is waiting for the no objection certificate (NOC) from the capital markets regulator and once it is received, the stock exchange would begin the process of filing its draft red herring prospectus (DRHP) for a much-awaited IPO.

Speaking to IANS, Ashish Chauhan said the exchange has sought No Objection Certificate (NOC) from the Securities and Exchange Board of India (SEBI). After getting the NOC, “we will prepare our draft red herring prospectus (DRHP) and then, we will send it back to the SEBI. After that, they will take their time to approve it”, said Ashish Chauhan.

Last month, SEBI Chairman had said the pending issues surrounding the NSE IPO will be resolved soon, and the regulator will move forward with the process.
At the FE CFO Awards, SEBI Chairman said that market manipulation will not be tolerated and they will keep a close watch, as manipulation in SME initial public offerings (IPOs) is rising.

The capital markets regulator has, in the recent past, issued multiple orders related to SME IPOs, alleging fund siphoning, manipulation of issue subscriptions, incorrect disclosures, and other irregularities.

We will continue to watch. On market manipulation, we will come down very hard going forward. I mean, we have come hard earlier also, but I think going forward, market manipulation will be one which we will not tolerate, he said during an event here.

The issue of manipulation in derivative trades, especially in index options, has also come up and SEBI is investigating these issues.