Sebi letter may put NSE IPO in limbo

The National Stock Exchange's (NSE's) plan to launch an initial public offering (IPO) remains in limbo as the Securities and Exchange Board of India (Sebi) has highlighted several deficiencies in its latest communiqué to the exchange.

- SAMIE MODAK & KHUSHBOO TIWARI

Sources said Sebi, in a comprehensive letter, has outlined all the areas the country's top bourse must address before it is IPO-ready. Sebi has given NSE up to 24 months to resolve these issues before seeking approval for its long-delayed maiden IPO. "The recent activation of NSE's International Securities Identification Number — a unique global code for securities trading and settlement — to enable faster transfer of NSE shares was seen as a precursor to the IPO. However, Sebi's letter indicates that the IPO's fate remains uncertain," said a source. NSE declined to comment, while queries sent to Sebi remained unanswered until the time of going to press.