..... . VALI disclosures . .....: 18/06/26, NSE IPO

Thursday, June 18, 2026

18/06/26, NSE IPO

The long-awaited initial public offering (IPO) of the National Stock Exchange (NSE) has finally taken off. The country's largest stock exchange filed its 614-page draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) and the BSE on Wednesday. The shares will be listed on BSE, just as BSE's own shares are listed on NSE.

The IPO is entirely an offer for sale (OFS), with existing shareholders collectively divesting around 6 percent of the exchange's equity. Based on the NSE's unlisted market valuation of around Rs 5 lakh crore, market participants estimate the issue size at approximately Rs 30,000 crore, making it one of the largest IPOs in India's capital markets since the Hyundai Motor India IPO of around Rs 27,000 crore in 2024.

Notably, the country's largest insurer and an existing shareholder in the exchange, Life Insurance Corporation of India (LIC), is not among the selling shareholders under the proposed share sale structure.

BOB, GIC, NIC. Mauritius-based shareholders among sellers

As per the list of selling shareholders, State Bank of India (SBI) is the largest selling shareholder, offering up to 24.75 million shares. MS Strategic (Mauritius) Limited will divest up to 16 million shares, while Canada Pension Plan Investment Board has offered up to 11.87 million shares in OFS.

Other sellers include Aranda Investments (Mauritius) Pte. Ltd., which has offered to sell up to 11.24 million shares, while Bank of Baroda and Stock Holding Corporation of India Ltd. have offered around 11 million shares each. PSU insurers General Insurance Corporation of India (GIC Re) is selling up to 10.65 million shares and The New India Assurance Company Ltd up to 10.5 million shares. National Insurance Company Ltd. and United India Insurance Company Ltd. are each divesting around 6 million shares.

Before the filing, the IPO committee of the exchange met today to conclude the IPO filing process. NSE's board had cleared the DRHP on Monday.

NSE's board approved the proposed IPO on February 6 after the exchange received a No Objection Certificate (NOC) from SEBI in January 2026, clearing the way for its much-awaited listing. The regulator's clearance was significant as it was delinked from the settlement of some long-pending cases linked largely to alleged regulatory violations around co-location.

Listing was stalled since 2016

The DRHP filing would mark a major milestone for India's largest stock exchange, whose listing plans have remained stalled for nearly a decade owing to regulatory concerns, particularly those arising from the co-location controversy. NSE currently has nearly 1.8 lakh shareholders.

The exchange had first filed draft offer documents in 2016 for an OFS of around Rs 10,000 crore. However, SEBI subsequently advised it to withdraw the proposal amid governance concerns linked to the co-location issue.

Since then NSE has undertaken several governance and compliance reforms and made multiple representations to the regulator seeking approval for its listing. As part of its latest IPO preparations, the exchange appointed 20 merchant bankers along with legal advisers and other intermediaries.

Settlement Application

NSE had filed a settlement application on June 20, 2025, in the co-location case, in which certain brokers were accused of receiving preferential access to the exchange's trading systems. The exchange subsequently offered to pay Rs 1,387.39 crore to settle the matter.

Earlier, Moneycontrol had reported that SEBI's High-Powered Advisory Committee (HPAC) had recommended settlement of the case for around Rs 1,880 crore, including approximately Rs 1,200 crore towards disgorgement, about Rs 380 crore as interest, and the remaining amount towards other settlement charges. The recommendation is understood to be pending consideration by SEBI's panel of Whole-Time Members.

Report by Brajesh Kumar

Source:MoneyControl, Network18

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Trade Cycles

The four important features of Trade Cycle are (i) Recovery, (ii) Boom, (iii) Recession, and (iv) Depression!

The trades cycle or business cycle are cyclical fluctuations of an economy. A full trade cycle has got four phases: (i) Recovery, (ii) Boom, (iii) Recession, and (iv) depression. The upward phase of a trade cycle or prosperity is divided into two stages—recovery and boom, and the downward phase of a trade cycle is also divided into two stages—recession and depression.

Phases of Trade Cycle:

The phases of trade cycle are explained with a diagram:

(1) Recovery:

In the early period of recovery, entrepreneurs increase the level of investment which in turn increases employment and income. Employment increases purchasing power and this leads to an increase in demand for consumer goods.

As a result, demand for goods will press upon their supply and it shall, thereby, lead to a rise in prices. The demand for consumer’s goods shall encourage the demand for producer’s goods.

The rise in prices shall depend upon the gestation period of investment. The longer the period of investment, the higher shall be the price rise. The rise of prices shall bring about a change in the distribution of income. Rent, wages, interest do not rise in the same proportion as prices.

Consequently, the margin of profit improves. The wholesale prices rise more than retail prices. The prices of raw materials rise more than the prices of semi-finished goods and the prices of semi-finished goods use more than the prices of finished goods.

(2) Boom:

The rate of investment increases still further. Owing to the spread of a wave of optimism in business, the level of production increases and the boom gathers momentum. More investment is possible only through credit creation. During a period of boom, the economy surpasses the level of full employment and enters a stage of over full employment.

(3) Recession:

The orders for raw materials are reduced on the onset of a recession. The rate of investment in producers’ goods industries and housing construction declines. Liquidity preference rises in society and owing to a contraction of money supply, the prices falls. A wave of pessimism spreads in business and those markets which were sometime before sellers markets become buyer’s markets now.

(4) Depression:

The main feature of a depression is a general fall in economic activity. Production, employment and income decline. The prices fall and the main factor responsible for it is, a fall in the purchasing power.

The distribution of national income changes. As the costs are rigid in nature, the margin of profit declines. Machines are not used to their full capacity in factories, because effective demand is much less. The prices of finished goods fall less than the prices of raw materials.

✳Reality Tips to Traders

1)Trading in the stock market is a marathon. 2)Protecting your capital is key. (Learn to protect first) 3)Making 0 on the day is better than losing 50k 4)Losses happen; they are part of this business. 5)It’s not you vs. the market. It’s you VS you. 6)You are your biggest enemy; learn to be mentally disciplined. 7)Don’t follow the majority; follow the correct path. 8)Traders without a stop loss end up not being traders for long. 9)There is always another trade. 10)The big money is made waiting for the right set-ups. 11)Waiting for the right trade is the most powerful strategy. 12)It is better to cut a loss than to wait to be proven right. 13)Position sizing can make or break you. 14)Worry about the downside before you even think about the upside. 15)Don’t listen to headlines

..BANKING TERMINOLOGY

There are various types of Banks: PSU Banks, Private Banks, Co-operative/Regional Banks, Small Finance Banks and Foreign Banks. When you deposit money in a bank, let's say the bank gives you an interest rate of 4%. But when the bank lends out this money, they lend it out at say, 12%. The difference of 8% in the above scenario is effectively the profit of the bank! The loans that do not pay interest for 90 days are known as Non-performing Assets. Banks have to provide for such bad loans. Structure of a Bank Asset for a Bank: The asset portion of a bank's capital includes cash, government securities, and interest-earning loans (e.g., mortgages, letters of credit, and inter-bank loans). Liabilities for a Bank: The bank's main liabilities are its capital (including cash reserves and, often, subordinated debt) and deposits. The latter may be from domestic or foreign sources (corporations and firms, private individuals, other banks, and even governments). Banks are required to maintain Liquidity with the Reserve Bank of India: SLR (Statutory Liquidity Ratio): It is the money a bank needs to preserve in the form of cash, gold or government Bonds before providing credit customers. This limitation is added by RBI on banks to make funds available to customers on-demand at your earliest convenience. Banks are required to maintain SLR at 18%. CRR (Cash Reserve Ratio): Banks are required to hold a certain proportion of their deposits in the form of cash. Banks don’t hold these as cash with themselves, but deposit such amounts with RBI / currency chests. CRR rate is at 4.5% currently. Repo Rate: The rate at which the RBI lends short-term money to the banks. The RBI through its Monetary Policy committee changes the repo rate to balance growth and Inflation. Reverse Repo rate: The rate at which banks park their short-term excess liquidity with the RBI. Now let us understand various terminologies for Banks Net Interest Income (NII): This is the spread the bank makes on its lending. It is calculated as Interest Income – Interest Expended Net Interest Margin (NIM): This is the spread the bank makes on its lending. It is the earning which is left after deducting the cost paid to depositors from its yields on Loans. This is denoted in % terms. The formula is Yield on Loans – Cost of funds Capital Adequacy Ratio (CAR): The capital adequacy ratio (CAR) is a measure of a bank's available capital expressed as a percentage of a bank's risk-weighted credit exposures. Essentially, it is the Capital that is available to lend. Tier I Capital – In simple words this capital is freely available with the bank to lend out. Tier II Capital- This is the capital tied up somewhere and is less freely available to lend. In case of an adverse event, the bank can use this capital to lend. Under Basel III norms, a bank’s tier 1+tier 2 capital must be a minimum of 8% of its risk-weighted holdings. The minimum capital adequacy ratio, also including the capital conservation buffer, is 10.5%. Current Account Saving Account (CASA)- There is no interest paid on the Current Account and a small interest rate is paid on a savings account. The combination of both is called CASA which shows the liabilities of the bank on which it pays relatively less interest. Deposits: Bank deposits are a savings product that customers can use to hold an amount of money at a bank for a specified length of time. In return, the financial institution will pay the customer the relevant amount of interest, based on how much they choose to deposit and for how long. Now let us come to NPA. Gross NPA (GNPA): It is the total loans on which no payment has been paid for 90 days or more. GNPA % is usually shown in each Bank’s quarterly results. The percentage is basically the GNPA amount as a % of the total advances. Slippages: Slippages denote the fresh amount of loans that have turned bad in a year. The slippage ratio of a bank is calculated as Fresh accretion of NPAs during the year /Total standard assets at the beginning of the year multiplied by 100. Provisioning Coverage Ratio (PCR): This is the ratio of provisioning to GNPA and indicates the extent of funds a bank has kept aside to cover loan losses. For Instance, a company has GNPAs of Rs 100 and they have set aside 50 Rs, then the PCR is 50%. Net NPA (NNPA): The total figure left after deducting provisions made for bad loans from GNPA. (GNPA – Provisions+upgrades/writeoffs = NNPA) Special Mention Account (SMA) SMA-0 is a category in which stress with respect to the principal and interest has remained overdue for a period of 0 to 30 days. SMA-1 is a category in which stress with respect to the principal and interest has remained overdue for a period of 30-60 days. SMA-2 is a category in which stress with respect to the principal and interest has remained overdue for a period of 60-90 days

..... . VALI disclosures . .....

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Thursday, June 18, 2026

18/06/26, NSE IPO

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18/06/26, Trading Plan for Today

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