1 week ago

NSE May Allow Shares to Trade Under Permitted-to-Trade Route

NSE may soon sell its shares to the public.

It could first list those shares on another stock exchange.

Then, NSE might allow people to buy and sell them on NSE itself.

This could happen through a system called permitted-to-trade.

That system allows trading but does not mean the shares are officially listed there.

The company still follows listing rules for the exchange where it is actually listed.

NSE already lets more than 200 other companies trade this way.

The plan is important because NSE is preparing to become publicly traded.

Key facts

Proposed mechanism: Permitted-to-trade status on NSE after the shares are listed on another recognised stock exchange.
Separate approval: An industry source said NSE may not need separate Sebi approval for the arrangement.
Key distinction: Permitted-to-trade enables buying and selling but does not constitute a listing on that exchange.
Existing NSE securities: More than 200 companies trade on NSE without being listed on NSE.
Other exchanges: MSEI and NCDEX together have around 4,000 companies whose securities are permitted to trade without being listed there.
Significance: The arrangement could matter as NSE prepares for its public-market debut.

thehansindia.com · 1 week ago