1 week ago
NSE May Allow Own Shares to Trade After BSE Listing
The National Stock Exchange of India, or NSE, wants to sell shares to the public in an IPO.
It may officially list those shares on the Bombay Stock Exchange, or BSE.
NSE is also considering allowing people to trade the shares on NSE itself.
A special system called “permitted to trade” could make this possible without formally listing the shares on NSE.
Current rules do not clearly allow a stock exchange to list its own shares.
NSE would therefore need permission from India’s market regulator, SEBI.
The plan was discussed with investors during IPO road shows, but it is not final.
If approved, investors could trade NSE shares on both BSE and NSE.
NSE is reportedly aiming to launch the IPO in the second half of September 2026.
NSE may formally list its shares on BSE while allowing them to trade on NSE under the “permitted to trade” category.
The proposal was discussed with global investors during road shows for NSE’s planned initial public offering.
Existing regulations do not permit a stock exchange to self-list, so NSE would need approval from SEBI.
The permitted-to-trade framework allows securities to trade on NSE without formal listing there, while retaining disclosure obligations and regulatory oversight.
NSE is reportedly targeting an IPO in the second half of September 2026, subject to approval of its draft prospectus.
- Who
- National Stock Exchange of India Ltd. (NSE), with approval potentially required from the Securities and Exchange Board of India (SEBI).
- What
- NSE may formally list its shares on BSE and allow them to trade on NSE under the permitted-to-trade framework.
- Where
- On the platforms of BSE Ltd. and NSE in India.
- When
- The proposal was discussed during recent IPO road shows; NSE is reportedly targeting the second half of September 2026 for the IPO, subject to regulatory approval.
- Why
- The arrangement could give NSE shares access to liquidity on both exchanges and potentially make them eligible for inclusion in Nifty indexes.
Key facts
- Formal listing venue
- BSE Ltd. would be the primary and formal listing venue under the proposal.
- Potential NSE trading status
- NSE shares could trade on NSE under the “permitted to trade” category.
- Required approval
- The Securities and Exchange Board of India would need to approve trading NSE shares on its own platform.
- Permitted-to-trade framework
- Securities can trade on NSE without being formally listed there, while their existing compliance and disclosure obligations remain unchanged.
- Existing users of the framework
- About 250 companies currently trade on NSE under the permitted-to-trade category.
- Proposed IPO
- NSE filed a draft red herring prospectus for an offer for sale of 14.89 crore equity shares.
- IPO timing
- People familiar with the matter said NSE expects approval by the end of August and is targeting a launch in the second half of September 2026.
- Recent quarterly results
- For the quarter ended June 30, NSE reported consolidated operating revenue of Rs 4,560 crore and net profit of Rs 3,120 crore.
Sources
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