Even as investors are eagerly awaiting the initial public offering (IPO) of National Stock Exchange (NSE), Sebi has come out with a checklist of pre-conditions that NSE needs to fulfill before applying for IPO with the market regulator.
According to a CNBC-TV18 report, one of the pre-conditions suggested by the Securities and Exchange Board of India is that the NSE, which is India's largest financial exchange, should be glitch-free for a year. NSE has been asked to strengthen its technology infrastructure to ensure this.
Other pre-conditions that NSE needs to fulfill before applying for IPO include improving standards of corporate governance and resolving all the legal matters pending before the Securities Appellate Tribual (SAT) and the Supreme Court.
There are also reports that NSE is planning to seek an exemption from the minimum dilution required in an IPO.
NSE managing director and chief executive officer Ashishkumar Chauhan had, earlier this year, said "...as the number of investors in India doubles or triples from 7.5 crore currently, SEBI needs to have confidence in our processes, technology and intentions. As and when SEBI becomes more comfortable, they will tell us to apply (for IPO) and we will go ahead."
