NSDL to likely launch IPO before April to comply with SEBI mandate of single-entity ownership: Sources
The IPO will be entirely an offer for sale (OFS), with six shareholders diluting their stakes, including the National Stock Exchange (NSE), IDBI Bank, and HDFC Bank.
NSDL to likely launch IPO before April to comply with SEBI mandate of single-entity ownership: Sources
The largest depository in India, the National Securities Depository (NSDL), is preparing to go public by early April, according to people with knowledge of the situation.
The decision is essential for meeting the Securities and Exchange Board of India’s (SEBI) requirement, which limits single-entity ownership in market infrastructure institutions to 15 percent.
The approval for the Initial Public Offering (IPO) is valid until September, but the regulatory allowance to comply with the ownership guidelines will expire in April. This has prompted NSDL to expedite the process.
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“We are planning to squeeze in the IPO within the next month to meet the deadline,” said a company official.
The IPO will be entirely an offer for sale (OFS), with six shareholders diluting their stakes, including the National Stock Exchange (NSE), IDBI Bank, and HDFC Bank.
In 2018, Sebi introduced rules limiting single-entity ownership in market infrastructure institutions to 15 percent, with a five-year compliance window ending in October 2023. NSE, which holds 24 percent of NSDL, sought an extension from Sebi, leading to a temporary suspension of the rule between August and December 2023. This delay also impacted NSDL’s final IPO approval.
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