New Delhi, Sept. 4 -- The National Stock Exchange of India Ltd (NSE) has received the Securities and Exchange Board of India's (SEBI) approval for its proposed initial public offering (IPO), clearing a key regulatory hurdle for the much-awaited listing of the country's largest stock exchange.

SEBI said this in its processing-status report issued during the week ending Friday.

NSE had filed its draft red herring prospectus (DRHP) with SEBI on June 17 with Kotak Mahindra Capital Company Ltd as the coordinating lead manager. The proposed issue is classified as an OFS-only IPO, meaning existing shareholders will offer their shares for sale, with NSE itself not issuing any fresh shares as part of the offering.

The SEBI approval marks a majo...