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Sebi Chairman Tuhin Kanta Pandey says the market regulator is at an advanced stage of issuing the much-awaited No Objection Certificate (NOC) to the exchange.
Sebi Chairman Tuhin Kanta Pandey. (File Photo)
The long-pending Initial Public Offering (IPO) of the National Stock Exchange may finally see movement, with Securities and Exchange Board of India (Sebi) indicating that regulatory clearance is close. Sebi Chairman Tuhin Kanta Pandey said the market regulator is at an advanced stage of issuing the much-awaited No Objection Certificate (NOC) to the exchange.
“I think we are at a very advanced stage of issuing the NOC for the NSE IPO, maybe within this month,” Pandey said while speaking to ANI, though he stopped short of committing to a firm timeline.
The comments have raised fresh expectations around the listing of India’s largest stock exchange, whose IPO plans have remained in limbo for nearly a decade due to regulatory and governance issues.
A Long and Troubled IPO Journey
The NSE first filed its Draft Red Herring Prospectus (DRHP) in December 2016, but the process was derailed following serious governance concerns. Central to the delay was the co-location controversy, in which allegations emerged that certain high-frequency traders received unfair access to the exchange’s algorithmic trading systems. Sebi’s investigations into these issues effectively stalled the listing plans for years.
In August 2024, the NSE reapplied to Sebi seeking a fresh no-objection certificate to proceed with its IPO, signalling its intent to put past issues behind it.
A key milestone came in October 2024, when the exchange settled the Trading Access Point (TAP) Architecture and Network Connectivity case by paying a penalty of Rs 643 crore. The case related to alleged failures by the exchange and its senior officials to prevent certain traders from exploiting system architecture advantages.
Pandey noted that the exchange has since taken multiple corrective steps, including changes in senior management, board restructuring, strengthening compliance mechanisms, and resolving legacy regulatory issues.
Sebi Steps Up Oversight of Digital Platforms
Beyond the NSE IPO, Pandey also spoke about Sebi’s efforts to enforce accountability in the digital space, particularly on social media platforms.
“One of the ways that we are doing it is through looking at social media and wherever we find that there is transgression, we are asking the platforms to take it down,” he said, adding that more than 1 lakh takedowns have already been carried out in recent months.
A major pillar of this surveillance effort is AI Sudarshan, an artificial intelligence-based tool developed by Sebi to scan online content for market-related violations. The system helps regulators identify misleading or illegal content quickly, enabling faster enforcement action.
Crackdown on Fraud and Investor Protection
Addressing the rise in fraud cases involving misuse of Sebi’s name and logo, Pandey said the regulator has intensified coordination with law enforcement agencies across the country.
“SEBI has written to all states, including Chief Secretaries and Directors General of Police, requesting the appointment of nodal officers. Many states have already nominated officers, and training programs have been conducted,” he said.
As part of broader investor protection measures, Sebi has also launched SebiCheck, a verification tool that allows investors to confirm within 30 seconds whether a bank account, UPI handle, or QR code is officially authorised for securities market transactions. The tool has been available on SEBI’s website and mobile app since October 1, 2025.
Pandey urged investors to use the facility before transferring funds. “If money is sent to fraudulent accounts, investors get no protection. Awareness is critical,” he emphasised.
No Immediate Regulatory Changes Planned
On market regulation, particularly in the derivatives segment, Pandey made it clear that Sebi is not planning any immediate changes. He pointed out that a series of measures were already introduced in phases — first in October 2024, then in May 2025, with the final set implemented in December 2025.
“We are currently studying the data post-implementation. Once sufficient data is available, we will decide our next course of action. At this stage, we do not intend to disturb anything,” he said.
Gold Products and Investor Awareness Push
On gold-related investment avenues, Pandey clarified that regulated options such as gold ETFs are already functioning smoothly. While Electronic Gold Receipts (EGRs) are also permitted, he acknowledged that operational challenges have limited their wider adoption so far.
He also announced a revamp of Sebi’s investor awareness strategy. Based on a survey conducted in July, the regulator found that outreach is more effective when delivered in multiple languages and formats.
“Going forward, our investor awareness campaigns will be multilingual, multi-agency, and multimedia,” Pandey said. He added that Sebi will increasingly use short videos, reels, and other digital formats to engage younger investors, while ensuring that regulatory messages remain complete and accurate.
With a growing number of young investors entering the securities market, Pandey said Sebi is focused on making investor education both engaging and meaningful — while continuing to strengthen market integrity and oversight.
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January 11, 2026, 10:28 IST
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