The National Stock Exchange of India Ltd. is preparing to allow thousands of existing shareholders to sell their holdings as part of its planned initial public offering (IPO), according to regulatory requirements. This move addresses a key condition set by India's market regulator, the Securities and Exchange Board of India (SEBI), which mandates that a portion of shares be available for secondary market trading ahead of the main listing. The exchange, which operates India's largest equity market, is expected to announce the exact details of this shareholder sale mechanism soon. Thousands of investors holding NSE shares could now realize capital gains or rebalance portfolios ahead of the IPO's public offering.