NSE – May Allow Its Shares to Trade on Its Own Platform After BSE Listing

Expert Analysis:

• NSE is evaluating a proposal to allow its shares to trade on its own platform under the "Permitted to Trade (PTT)" mechanism after they are formally listed on rival BSE. The proposal was discussed with global investors during recent IPO roadshows.

• Under the proposal, NSE would continue to be listed only on BSE, while investors could also buy and sell NSE shares on the NSE platform, potentially improving liquidity and trading convenience.

• A key strategic benefit is that trading on NSE could pave the way for the stock's inclusion in NSE benchmark indices, which could attract passive fund inflows over time.

• The move is not final and remains subject to the applicable regulatory framework. Reports indicate that discussions are ongoing around how the PTT route would operate for a market infrastructure institution such as NSE.

• The news also had an immediate market impact, with BSE's share price declining after investors interpreted the proposal as a potential boost to liquidity in NSE's own shares.