Daijiworld Media Network - Mumbai

Mumbai, Jun 21: Sebi chairman Tuhin Kanta Pandey on Friday affirmed that there are no remaining obstacles for the National Stock Exchange (NSE) to proceed with its much-awaited initial public offering (IPO), clearing the air over the long-delayed market debut of the country’s largest stock bourse.

Speaking at the FE CFO Awards, Pandey stated, “There is no obstacle that will remain in case of NSE IPO,” though he refrained from committing to a timeline, including whether the IPO would happen before Diwali.

Addressing concerns over the clearing corporation ownership, Pandey clarified that Sebi does not see this as a barrier to the IPO. “We are fine with the ownership of clearing corporations by the stock exchanges. It is not an obstacle,” he said, noting that different countries adopt different models — with brokers owning clearing entities in the US, while India keeps them as separate bodies.

The Sebi chief added that NSE is currently working on settling some legal issues, which involve financial settlements and the withdrawal of certain cases. However, he did not detail the nature or amount of these settlements.

Pandey, who took over as chairman in March, also touched upon broader market reforms, including the optional nature of the proposed T+0 settlement system, citing complexities for foreign investors.

He highlighted India’s stable market conditions, strong domestic investor participation, and manageable volatility, adding that tax issues are not a primary concern for foreign investors — it’s other operational or regulatory factors that influence their decisions.

Pandey called for a more facilitative regulatory approach to promote growth and stressed the vital role CFOs play in ensuring transparency and market confidence. “The market looks to you for credibility. Investors depend on your disclosures. Regulatory bodies rely on your adherence,” he said.

Referring to the recent Gensol case, Pandey noted that while individual instances of misconduct may occur, they should not derail the broader goal of easing regulations and strengthening the capital market ecosystem.