The National Stock Exchange (NSE) cannot list its own shares on its platform due to regulatory provisions preventing conflicts of interest. According to NSE's Draft Red Herring Prospectus (DRHP), the restriction is laid down under the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018, commonly referred to as the SECC Regulations. The regulations govern stock exchanges and clearing corporations, which are classified as Market Infrastructure Institutions (MIIs), and prevent a stock exchange from listing its own securities on its trading platform. Since self-listing is not permitted, NSE has proposed listing its shares on BSE, its long-time rival, mirroring the existing arrangement under which BSE's shares are traded on NSE. BSE has already granted in-principle approval for NSE's proposed listing and will serve as the designated stock exchange for various IPO-related activities, including the finalisation of the basis of allotment.
The National Stock Exchange (NSE) has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) for its much-awaited initial public offering. According to reports, the NSE IPO is expected to be among the largest IPOs in Indian stock market history, with estimates pegging the issue size at around ₹30,000 crore. Reports suggest the NSE IPO could be priced in the range of ₹1,800 - ₹2,040 per share. At the upper end of the price band, NSE could command a valuation of more than ₹5 lakh crore, significantly higher than BSE's current market capitalisation of over ₹1.63 lakh crore as of June 22. However, recent market conditions suggest investor enthusiasm for major listings may be more subdued compared to previous years, with US and Indian IPO markets facing less enthusiastic reception after years of stagnant returns.
BSE has undergone a dramatic transformation from a traditional stock exchange to a comprehensive capital market infrastructure company, with revenue growing nearly eightfold from ₹609 crore in FY20 to ₹4,834 crore in FY26. The exchange's operating margins have expanded significantly to 64% in FY26 from 21% in FY20, while net profit attributable to shareholders rose sharply to ₹2,497 crore. According to The Financial Express, BSE now earns revenue from multiple activities including derivatives, listings, mutual fund transactions through the StAR platform, market data, index licensing, clearing services, and co-location facilities. The company remains debt-free with a return on equity of 44.8% and return on capital employed of 58% in FY26, demonstrating strong financial health and operational leverage as trading volumes increase without proportional cost increases.
The business of stock exchanges has benefited significantly from the post-pandemic surge in trading volumes, with trading turnover in the cash segment of Indian stock exchanges recording a compounded annual growth rate (CAGR) of about 19% between 2015-16 and 2025-26. Trading in derivative instruments also showed robust growth, with equity futures growing at a CAGR of about 12% and equity options by a stellar 47%. The rapid growth in derivatives trading has increased the share of the equity options segment in total trading turnover from about 2.3% in 2015-16 to 22% in 2025-26. For the NSE in 2025-26, transaction charges accounted for about 79% of its revenues, with nearly three-fourths coming from options trading. This represents a significant shift, as the NSE earned 60% of its total revenues of ₹16,601 crore from a segment that barely existed the first time it filed for an IPO in 2015-16.
For FY26, NSE reported revenue from operations of ₹16,601 crore, more than three times BSE's revenue of ₹4,834 crore. The exchange posted a profit after tax (PAT) of ₹10,302 crore, compared with BSE's net profit of ₹2,487 crore. NSE also reported slightly higher operating profitability, with an EBITDA margin of 66.9% versus BSE's 64%. According to Centrum Institutional Research, NSE's revenue from operations grew at a strong 24% CAGR over FY21–FY26, with EBITDA and net profit rising at 23% CAGR and margins consistently above 70% and ROE above 30%. The research firm expects earnings momentum to recover from FY27 onwards, with net profit projected to grow at ~16% CAGR over FY26–FY28E. Under the first scenario, NSE's ₹5 lakh crore valuation is seen as a structural play tied to India's rising household incomes and financialisation story, with the exchange currently serving over 129 million unique registered investors and enabling trading across 3,228 securities and instruments.
On June 17, 2026, NSE filed its draft red herring prospectus with SEBI, marking a decade since its first IPO attempt in 2016. The NSE IPO is structured as an offer for sale (OFS) of 14.89 crore shares by existing investors, with no fresh issue component, meaning the company will not receive any proceeds from the offering. The IPO allocation follows standard norms with 50% reserved for qualified institutional buyers (QIBs), 35% for retail investors, and 15% for non-institutional investors. NSE's ownership structure shows public shareholders including FIIs, PE Funds, banks, insurance, DIIs, and family offices hold a 65% stake, while 35% is owned by trading members (brokers). The exchange has maintained its global leadership position, ranking among the top three exchanges in the world in terms of number of trades in cash equities and first in contracts traded in equity derivatives from fiscal 2020 to 2026. NSE's revenue model remains heavily transaction-led, with total income of ₹18,713 crore in FY26, with nearly 70% coming from transaction charges.
