GOVERNANCE OVERHAUL PAVES WAY
The road to listing has been lengthy.
Initial plans announced in 2016 were put on hold, following regulatory scrutiny over governance practices and concerns about unfair trading access.
Since then, reforms in the exchange’s leadership, technology upgrades and strengthened compliance frameworks have helped pave the way for the IPO, according to analysts.
“You have the entire structural change that happened,” said Anand Rathi Share and Stock Brokers’ Kanchan.
“(To address) all the regulatory issues that happened, NSE very clearly came up with a very strong structural framework to ensure that none of these compliance issues come ahead.”
However, external risks could still affect the timing and success of the listing.
Global market volatility – fuelled by geopolitical tensions in the Middle East and shifting interest rate expectations – has made investors more cautious.
“A lot of companies are putting their listing plans on hold right now given the volatility. It’s anybody’s guess how long it’s likely to continue,” said Vijay Kuppa, CEO of investment platform InCred Money.
“But I think there’s another six to nine months before the NSE is ready to hit the market. By then maybe the market scenario could change.”
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