NSE may allow its shares to trade on its own platform after BSE listing

Under the plan, NSE shares could be placed in the exchange's 'permitted to trade' category even though BSE would remain the formal listing venue.The National Stock Exchange of India (NSE) may allow its own shares to be traded on its platform after the stock exchange lists them on rival BSE, according to people familiar with the matter.The proposal was discussed with global investors during recent roadshows for NSE's proposed initial public offering (IPO), the people said. They asked not to be identified as the discussions are private.Under the plan, NSE shares could be placed in the exchange's 'permitted to trade' category even though BSE would remain the formal listing venue.NSE MAY NEED SEBI APPROVALCurrent regulations do not allow a stock exchange to list its own shares on its platform. NSE is classified as a market infrastructure institution and would therefore need approval from the Securities and Exchange Board of India (Sebi) for the proposed arrangement, the people said. Discussions are still ongoing and any such move would depend on regulatory approval.An NSE representative did not respond to requests for comment.WHAT IS THE 'PERMITTED TO TRADE' CATEGORY? The 'permitted to trade' framework allows securities to be traded on NSE without being formally listed on the exchange.According to NSE's website, companies in this category continue to have the same compliance and disclosure obligations.NSE changed its index eligibility rules in 2019 to allow securities in the permitted-to-trade category to qualify for inclusion in Nifty indexes. Earlier, only stocks formally listed and traded on NSE could be considered for the indexes.Around 250 companies that are not listed on NSE currently trade on its platform under this category. These include Elantas Beck India, Goodyear India and Novartis India.NSE SHARES COULD TRADE ON BOTH EXCHANGESIf the proposal gets regulatory approval, NSE shares could be available for trading on both BSE and NSE while BSE remains the formal listing venue.This could give the shares access to liquidity on both exchanges. It could also eventually allow NSE's stock to qualify for inclusion in its own benchmark indexes, adding another interesting element to the exchange's much-awaited IPO.NSE TARGETS SEPTEMBER IPONSE expects to receive Sebi's approval for its draft prospectus by the end of August, according to people familiar with the matter.The exchange is targeting the launch of its IPO in the second half of September.The proposed listing is expected to be closely watched as it would mark a significant step for India's largest stock exchange.- EndsPublished On: Aug 20, 2026 16:14 IST