Persistent Systems is currently engaged in discussions to acquire a controlling stake in NSEIT, the IT services subsidiary of the National Stock Exchange (NSE), according to a report by Moneycontrol. Established in 1999, NSEIT specializes in providing digital examination, edtech solutions, cybersecurity, RPA, testing, cloud services, and infrastructure management for clients within the banking, insurance, and capital market sectors.

As per regulatory filings, NSEIT reported a revenue of Rs 272.4 crore in 2021. Persistent Systems, a prominent midcap IT company founded in 1990 in Pune, has demonstrated significant industry presence, achieving a revenue of Rs 2,449 crore in the second quarter of 2023-24, representing a noteworthy 17.72 percent increase from the previous year.

The decision by the National Stock Exchange to divest NSEIT aligns with recommendations from a committee appointed by the Securities and Exchange Board of India (SEBI) to fortify governance practices within stock exchanges. Led by G Mahalingam, the committee advised NSE to streamline its focus by exiting non-core businesses.

In May, Ashish Chauhan, MD and CEO of NSE, announced the classification of the education and technology businesses of NSE Group as discontinuing operations and assets held for sale, in adherence to the committee's recommendations.

Persistent Systems has a history of strategic acquisitions, notably the 2022 purchase of US-based MediaAgility for approximately $72 million. The company's market performance reflects resilience, closing at Rs 6,290 on the National Stock Exchange on December 7, with a marginal 0.72 percent decrease from the preceding day.

NSEIT's specialization in digital examination, edtech solutions, and cybersecurity positions it as a valuable asset for Persistent Systems, enhancing its capabilities in key sectors such as banking, insurance, and capital markets. 

The National Stock Exchange's decision to divest NSEIT, in response to recommendations from the SEBI-appointed committee on governance, reflects a strategic realignment to focus on core business areas. This move aims to enhance governance practices within stock exchanges, demonstrating a commitment to regulatory guidelines and market best practices.

Overall, this potential acquisition showcases the strategic foresight of Persistent Systems in adapting to industry changes, leveraging opportunities for growth, and aligning with regulatory imperatives in the dynamic IT services sector.