NSE is in IPO market for price discovery, says its top executive

CHENNAI: The objective of NSE for public listing is to facilitate price discovery, said a top executive during a press meet here on Saturday, adding that India’s largest stock exchange does not need to raise further capital.

Sriram Krishnan, chief business development officer (CBDO) at NSE Ltd, said, “The NSE is coming to IPO markets for price discovery and does not need further capital as such. Of course, proper valuation and accurate price discovery on a liquid exchange is an important milestone in a company’s journey.”

He further added that the NSE is using artificial intelligence (AI) in surveillance to determine behavioural patterns. “With help of AI, we are able to prevent manipulation and any such instances. This is an evolving process. We have been using this technology for the past two-three years now.” Speaking about the revision in the fund-raise size by the NSE, Krishnan said, “Initially, we had conducted an OFS exercise, wherein we had approached all the shareholders asking them whether they are interested in offloading any shares.

At that time, 6% stake was available for OFS process. However, some shareholders and institutional investors feel that NSE is more valuable than the current price range, and we are also aware full pricing of the valuation has not been done. On the listing day, we will come to know where this goes.”

He also said that the NSE is planning to electronics gold receipt (EGR) in the coming months, which will help to create spot market for gold in India.