New Delhi: The National Stock Exchange‘s proposed initial public offering (IPO), expected to raise nearly Rs 30,000 crore through an offer-for-sale, could become India’s largest-ever public issue, while also highlighting the exchange’s dominant position in the country’s capital markets and its heavy reliance on derivatives trading revenues, according to an analysis by Zerodha’s Daily Brief.

Calling the NSE “the beating heart” of India’s financial market infrastructure, the analysis noted that the exchange sits at the centre of a rapidly expanding investor ecosystem, with nearly 13 crore registered investors as of March 2026, up from just over 9 crore two years ago.

“India is now the fourth-largest equity market in the world by market capitalisation,” the report said, adding that “India added about 4 crore new investors in just two years.”

The analysis highlighted that NSE generated about Rs 16,600 crore in operating revenue during FY26, with nearly 79 per cent coming from transaction charges collected on trades executed on its platform. Equity options alone contributed around Rs 10,000 crore, accounting for roughly 60 per cent of total revenue.

“The mega-earner, however, were equity options, which singularly generated Rs 10,000 crore – or 60 per cent of NSE’s total revenue,” the report said. “Much of that was the result of a single instrument: the Nifty 50 weekly options contract.”

However, the report noted that such dependence makes NSE highly sensitive to regulatory changes. It pointed to the Securities and Exchange Board of India’s (SEBI) derivatives market reforms in October 2024, which reduced weekly expiries and increased lot sizes, leading to a decline in trading volumes.
“These measures reduced retail speculation, as intended. Derivatives volumes fell sharply, and NSE’s revenue fell with them,” the analysis said. Revenue from operations declined from about Rs 17,100 crore in FY25 to Rs 16,600 crore in FY26, while profit fell from approximately Rs 12,200 crore to Rs 10,000 crore. The report also underscored NSE’s strong profitability. Despite spending around Rs 6,000 crore during FY26, the exchange reported a profit of nearly Rs 10,000 crore, translating into a margin of about 51 per cent.

“For a company with Rs 16,600 crore in revenue, that is exceptionally lean,” the report said while discussing employee expenses, which stood at Rs 790 crore. “This just isn’t a people business. NSE’s product is a matching engine: software that processes millions of orders per second.”

Another key takeaway from the analysis was the role of NSE Clearing Ltd (NCL), the exchange’s subsidiary that guarantees settlement of trades. The report said NCL clears about 88 per cent of all cash market trades and 91 per cent of equity derivatives in India.

“It is the silent guardian ensuring the sanctity of every trade on the NSE,” the report said.

According to the analysis, NSE distributed Rs 8,660 crore as dividends in FY26, representing a payout ratio of 84 per cent, while continuing to hold investments worth Rs 64,771 crore on its balance sheet.

Summing up the exchange’s business model, the report said, “NSE has as privileged a place as the financial markets can offer. It earns whether markets go up or down, and whether individual trades are profitable or not.” It added that unless there is a major collapse in India’s financial markets, “few things can touch this giant”.

Jio Platforms Ltd. plans to use part of the proceeds from its proposed initial share sale to repay its telecom unit’s external commercial borrowings of almost $3 billion, a draft IPO document showed.

Jio, a crown jewel of billionaire Mukesh Ambani’s oil-to-retail conglomerate, filed the draft documents on Friday for an IPO that includes the issuance of as many as 270 million new shares, kick-starting a long-awaited process of unlocking shareholder value.

While the draft document didn’t specify the potential size of IPO, it mentioned that 275 billion rupees ($2.9 billion) will be used for repaying existing loans while some funds could be used for general corporate purposes.

Reliance Jio Infocomm Ltd., its telecom unit, holds three so-called ECB facilities totaling 300.6 billion rupees in dollar and yen terms, the document showed. Australia & New Zealand Banking Group Ltd., Bank of America Corp., Barclays Bank Plc, BNP Paribas and Citibank are among lenders. The borrowings are proposed to be prepaid in full or in part from Jio Platforms’ IPO net proceeds, according to the draft document.

Such prepayments will help reduce net debt and associated servicing costs, Jio Platforms said in the draft herring prospectus.

“Additionally, the company believes that this would improve our ability to raise further resources in the future to fund potential business development opportunities,” it said.
The deleveraging of the balance sheet will also position Jio Platforms favorably for continued investment in its strategic priorities, including 5G network densification and expansion, fixed broadband penetration, AI and cloud services, it said.

This article was written by

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in KMX over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

This article was written by

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in ITWO over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha’s Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Indian Clearing Corporation Limited (ICCL), a wholly owned subsidiary of BSE Ltd, has unveiled its new brand identity as BSE Clearing Limited (BSECL), according to a company release issued on Thursday.

The company said the transition marks a significant milestone in strengthening alignment with parent entity BSE Ltd and reinforces its role within the broader BSE ecosystem.

BSECL will continue to provide clearing, settlement and risk management services across the equity, equity derivatives, currency derivatives, debt, commodity, mutual fund, electronic gold receipt (EGR) and securities lending and borrowing (SLB) segments, among others.

The company said it remains committed to ensuring financial market stability, efficient collateral management and the highest standards of regulatory compliance as mandated by the Securities and Exchange Board of India (SEBI).

“The transition from ICCL to BSE Clearing Limited reflects our strong alignment with the BSE brand and our role as a trusted pillar of India’s financial market infrastructure. Over the years, we have built robust clearing, settlement, and risk management capabilities that support market integrity and investor confidence,” said Vaisshali Babu, Managing Director and Chief Executive Officer of BSE Clearing Limited.

“As we embark on this new chapter, we remain steadfast in our commitment to operational excellence and regulatory compliance while supporting the long-term resilience of India’s capital markets,” she added.
According to the release, the rebranding will have no impact on the corporation’s operations, legal obligations, contracts or service commitments towards members, participants and stakeholders.All existing agreements, memberships and regulatory registrations will continue without interruption, the company said.

BSE, Asia’s oldest stock exchange, is also the world’s largest exchange by number of listed companies. Over the years, it has played a key role in the development of India’s capital markets and serves as a major platform for companies raising capital. Its benchmark index, the Sensex, is widely tracked by domestic and global investors as a gauge of Indian equity market performance.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)