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A potential NSE listing is positioned as the final step to "complete the trioka" of India's market infrastructure, with forward-looking benefits expected in transparency, valuation discovery and global index inclusion, according to a research report by Jefferies.
The report argued that an IPO would be a near-term catalyst. "NSE listing will bring greater transparency, better governance and price discovery for India's largest exchange", it notes, adding that it will also "pave the way for MSCI and FTSE inclusion of NSE as an investable entity" once regulatory hurdles are cleared. The brokerage expects the listing to trigger re-rating across capital market peers. "We expect the listing to act as a benchmark for valuation of other exchanges and market infrastructure institutions", the report says, with potential spillovers for depositories, clearing corporations and data vendors. The timing is tied to resolution of legacy issues. The report flagged that "once the co-location case and other regulatory matters are fully settled, the path for IPO will open up". Until then, it expects NSE to continue strengthening compliance and disclosure norms to meet public-market standards. Beyond governance, the report highlighted the strategic rationale. It described NSE, CDSL and BSE as the three pillars of India's market structure -- the "trioka". Listing of NSE will complete the trioka and provide investors a full set of listed market infra plays. That completeness is seen as critical for domestic and foreign investors seeking direct exposure to India's trading volumes and derivatives growth. Financially, the report expects listing proceeds and the public float to improve NSE's flexibility. "Capital raised can be deployed toward technology upgrades, international expansion and new product lines like GIFT City and data services". It also sees the move pushing the exchange toward global best practices on board independence and segment reporting. For the broader market, the report is constructive. "We view NSE listing as a positive for market depth, retail participation and India's positioning as a global financial hub". It cautions that valuation will depend on growth in cash equities, F&O volumes and new businesses, but argues the structural tailwinds remain intact. The report framed the IPO not just as a fundraise, but as the closing piece of India's listed market-infrastructure architecture, with governance and global access as the key forward-looking payoffs. (ANI)
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