National Stock exchange of India Limited (NSE) is a leading stock exchange in India. NSE was established in 1992 and is first dematerialized electronic exchange in India. Vikram Limaye is Managing Director & Chief Executive Officer of NSE.
As on April’2018 NSE is world’s 11th largest stock exchange by Market Cap. Its flagship index Nifty50 which was launched in 1996 is used in India as well as all over world as a barometer of Indian capital markets.
As per Economic Times estimated upto April’2018, around 6 crore retail investors had invested their money in stocks in Country.
NSE has taken huge strides in technology in these 20 years. In 1994, when trading started, NSE technology was handling 2 orders a second. This increased to 60 orders a second in 2001. Today NSE can handle 1,60,000 orders/messages per second, with infinite ability to scale up at short notice on demand, NSE has continuously worked towards ensuring that the settlement cycle comes down. Settlements have always been handled smoothly. The settlement cycle has been reduced from T+3 to T+2/T+1.
NSE offers trading and investment in the following segments
- Mutual Funds
- Exchange Traded Funds
- Initial Public Offerings
- Security Lending and Borrowing Scheme etc.
- Interest Rate Futures
- Equity Derivatives
- Currency Derivatives
- Commodity Derivatives
- Corporate Bonds
Present Domestic Investors of NSE India
- Life Insurance Corporation of India (LIC)
- State Bank of India (SBI)
- IDFC Limited
- Stock Holding Corporation of India Limited
NSE Managing Director (MD) Vikram Limaye has already said they will bring NSE IPO by September in 2020 subject to approval from Securities and Exchange Board of India (SEBI).
“We have approached SEBI to seek its approval for the IPO and after that we will start the process of appointing merchant bankers, who will help the exchange in filing draft prospects for the IPO,” NSE MD and CEO Vikram Limaye told news agency PTI.
According to him, the entire IPO would be offer-for-sale (OFS), wherein existing shareholders will sell NSE’s shares. Last year IFCI has sold its entire stake of 2.44% for Rs. 805.6 Cr.
NSE has already filed its Draft red herring prospectus (DRHP) with SEBI to launch its IPO. However, the plan was put on hold after investigations began into the co-location case. It was alleged that the exchange misused its co-location facility and gave preferential access to certain trading brokers,by allowing them to place their servers at the same location as NSE’s algorithmic trading servers. This offered an unfair advantage to the selected brokers. A subsequent SEBI probe found NSE guilty and barred it from capital markets for six months, starting April 2019.
CBI as well as Income Tax Department investigations are still going on in this case.
Now, in 2020 SEBI may ask NSE to include information and status of ongoing cases along with escrow a/c details in DRHP to help investors taking informed decision. NSE IPO will be the biggest public offers in India.