India, June 18 -- The National Stock Exchange of India Ltd (NSE) on Wednesday night filed its draft red herring prospectus with the market regulator for what could be the biggest initial public offering (IPO) in India.

The IPO consists entirely of an offer for sale of up to 149 million equity shares by existing institutional shareholders, the document filed with the Securities and Exchange Board of India (Sebi) showed. This means a total 6% of NSE's paid-up capital is being offered to new investors. No fresh equity capital will be issued as part of the transaction.

Proceeds from the transaction will go entirely to the selling shareholders, which include State Bank of India, Canada Pension Plan Investment Board, affiliates of Morgan Stan...