NSE IPO Update: Shares May Trade on NSE Even After Listing on BSE

National Stock Exchange of India (NSE) may explore allowing its shares to trade on its own platform after the proposed IPO listing on BSE, as reported by The Economic Times. 

The proposal was reportedly discussed with global investors during recent roadshows for NSE’s proposed IPO. If approved, NSE shares could trade under the exchange’s “permitted to trade” category while remaining formally listed on BSE. 

The move could allow NSE shares to access liquidity on both exchanges and may also make them eligible for inclusion in NSE’s benchmark Nifty indexes. 

NSE May Seek SEBI Approval for Self-Trading 

Current regulations do not provide a framework for a stock exchange to list its own shares on its trading platform. NSE is classified as a market infrastructure institution and would therefore need approval from the Securities and Exchange Board of India (SEBI) for its shares to trade on NSE. 

Under the proposed arrangement, NSE shares would be formally listed on BSE but could also trade on NSE through the “permitted to trade” framework. Securities under this category can trade on NSE without being formally listed on the exchange, while their existing compliance and disclosure requirements remain unchanged. 

The discussions are still ongoing, and any such arrangement would depend on regulatory approval. 

NSE Shares Could Become Eligible for Nifty Indexes 

NSE’s “permitted to trade” framework could also have implications for the stock’s future index eligibility. In 2019, NSE revised its index rules to allow securities traded under this category to qualify for inclusion in Nifty indexes. 

Around 250 companies that are not formally listed on NSE currently trade on the exchange under this framework. These include Elantas Beck India, Goodyear India and Novartis India. 

If NSE shares are eventually permitted to trade on the exchange, the arrangement could provide access to liquidity across both BSE and NSE while keeping BSE as the formal listing venue. 

Read More: NSE IPO: Exchange Secures No Objection Certificate from SEBI for Listing 

NSE IPO Expected in September 2026 

NSE is reportedly targeting the launch of its IPO in the second half of September, subject to regulatory approvals. The exchange is expected to receive SEBI approval for its draft prospectus by the end of August, according to people familiar with the matter. 

The proposed IPO is expected to be closely watched given NSE’s position as one of India’s key market infrastructure institutions. 

Conclusion 

NSE may seek SEBI approval to allow its shares to trade on NSE after formally listing them on BSE. The proposed arrangement could provide access to both exchanges and may support future eligibility for Nifty indexes, subject to regulatory approval. 

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