NSE could trade its own shares via permitted-to-trade system without new SEBI approval
NSE may allow its own shares to be bought and sold on its platform under the existing permitted-to-trade framework, likely without needing fresh SEBI clearance.
A source familiar with the development said the National Stock Exchange is preparing to let its own shares be traded on its platform using the permitted-to-trade mechanism, which permits trading of securities that are listed on a different recognised exchange. Because the system does not constitute a new listing, the exchange is not expected to seek additional approval from the Securities and Exchange Board of India. NSE already offers trading in more than 200 companies whose shares are not listed on its market, and similar arrangements exist at MSEI and NCDEX, which together handle around 4,000 securities.
The distinction remains that companies must still comply with the disclosure rules of the exchange where they are officially listed. The arrangement could become significant as NSE readies for its own listing on a public market, allowing investors to buy and sell NSE shares on NSE while the official listing stays elsewhere.
Why it matters
It could give investors easier access to NSE stock and signal the exchange’s upcoming public listing.
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