CEO expects IPO "inevitable" in 3-5 years: India

Ravi Narain also told Reuters in an interview that NSE wanted to tie up with other exchanges to share products and services, rather than hunt for large-scale acquisitions.

"I think it's inevitable," Narain said when asked if an initial public offer (IPO) were possible in the next three to five years.

"Our shareholders will want one," he said in an interview on the sidelines of the annual meeting of the World Federation of Exchanges, taking place in Johannesburg this week.

NSE's private shareholders include Singapore state investment fund Temasek Holdings, which has a 5 percent stake in the bourse.

Before listing, the exchange will need to spin off its role as a securities regulator into either the state, or a state-run organisation, he said.

The bourse is also looking for opportunities to tie up with other exchanges, especially in emerging markets, Narain said.

"Typically, we have been great believers in the product and service alliances, rather than big-ticket M&A, partly because we're still in the process of domestic growth in beefing up our balance sheet and beefing up our market size."

Copyright Reuters, 2011