New Delhi [India], September 4 (ANI): The National Stock Exchange of India Ltd (NSE) has received the Securities and Exchange Board of India's (SEBI) approval for its proposed initial public offering (IPO), clearing a key regulatory hurdle for the much-awaited listing of the country's largest stock exchange.

SEBI said this in its processing-status report issued during the week ending Friday.

NSE had filed its draft red herring prospectus (DRHP) with SEBI on June 17 with Kotak Mahindra Capital Company Ltd as the coordinating lead manager. The proposed issue is classified as an OFS-only IPO, meaning existing shareholders will offer their shares for sale, with NSE itself not issuing any fresh shares as part of the offering.

The SEBI approval marks a major step forward for NSE's IPO plans and brings the exchange closer to entering the public markets. The next steps will include completing regulatory and procedural requirements and finalising the offer document and issue details before the IPO can be launched.

NSE had appointed a record 20 Book Running Lead Managers (BRLMs) or Merchant Bankers for its proposed IPO, underscoring the scale and significance of what is expected to be India's largest public issue.

According to the draft offer documents, NSE's proposed IPO will be entirely an offer for sale by existing shareholders. The offer comprises up to 148.91 million equity shares of face value Re 1 each. As the issue is an OFS, the proceeds from the share sale will accrue to the selling shareholders, while NSE itself will not receive any fresh capital from the offering.

With SEBI observations now issued, attention is likely to turn to NSE's updated offer document and the timeline for the IPO. The exchange will also have to complete the remaining listing formalities before the public issue opens for subscription. (ANI)