Earlier this week, the year-long BSE rally received a blow after the Securities and Exchange Board of India (Sebi) confirmed that the major equity bourses received the regulatory nod to exchange their expiry day for equity derivatives contracts. Now, all eyes would be on the BSE stock after the Sebi Chairman recently lifted hopes of an impending NSE IPO.
“There is no obstacle that will remain in case of NSE IPO,” Sebi chairman Tuhin Kanta Pandey said while answering questions at the FE CFO Awards in Mumbai. However, when asked whether the IPO could come to pass before Diwali this year, Pandey declined to comment on any prospective timeline.
Earlier this month, the BSE stock was on its dream run, hitting an all-time record high of ₹3,030 piece on June 10. The day ended with it closing at ₹3,005.40 per share—by then, it had jumped a staggering 239 per cent year-on-year.
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As the new changes come into effect, BSE (erstwhile Bombay Stock Exchange) will get Thursdays as the expiry day for derivative contracts from Tuesdays, while NSE will shift its equity derivatives contracts expiry day to Tuesday.
The BSE shares, among other bourse stocks, were on the uptick after markets were abuzz with “indications” of an impending initial public offering (IPO) by NSE or the National Stock Exchange.
NSE—valued at $4.7 lakh crore by Axis Bank’s Burgundy Private and Hurun India in its recent market rankings—is widely regarded as the second most valued firm in the country and India’s most valued unlisted company.
NSE’s Draft Red Herring Prospectus, for its public offering, was submitted to regulators back in December 2016. However, Sebi refused to give NSE the required No Objection Certificate (NOC) it needed as part of the IPO process.
Earlier this week, Pandey even hinted at a prospective IPO after the bureaucrat-turned-regulatory-chief stated that the NSE IPO application “is not something that cannot be sorted”.
And with his recent comments at the FE CFO Awards, hopes of the NSE IPO are now much stronger than what it was last week.
As the markets open on Monday, the BSE stock would be on the watchlist, along with that of the Central Depository Services (India) Ltd. CDSL is BSE’s version of the NSDL—the country’s two central securities depositories, which are like digital vaults where securities like shares, bonds, and mutual funds are held in an electronic format.
At Friday’s close, BSE settled at ₹2,691.00, up 215 per cent year-on-year, while CDSL shares closed at ₹1,688.20 apiece, up 67 per cent year-on-year.
