NSE shares may trade on its platform under 'permitted-to-trade' route: Report
The National Stock Exchange is considering a groundbreaking move to trade its own shares directly on its platform, potentially skipping the need for additional approval from Sebi. By leveraging its existing 'permitted-to-trade' mechanism, the NSE could facilitate trading of shares already listed on other recognized exchanges, making NSE shares available for its own trading after an initial…
The National Stock Exchange (NSE) may soon have its own shares traded on its platform under a "permitted-to-trade" route, according to a report by news agency PTI. The move could be made without requiring additional Sebi approval, as it could fall under the exchange's existing permitted-to-trade system, which allows investors to trade shares listed on another recognized exchange.
While trading on NSE does not mean a company is officially listed on the platform, the "permitted-to-trade" system ensures that the company meets disclosure and compliance requirements of the exchange where its shares are listed. Currently, NSE already allows over 200 companies to trade their shares on the platform, even if they are not listed on NSE.
This system is not unique to NSE, as other exchanges like MSEI and NCDEX also utilize it, allowing around 4,000 companies to have their securities traded on their platforms despite not being officially listed. As NSE prepares for its own public-market debut, this arrangement could prove beneficial, potentially making NSE shares available for trading on the exchange itself, while they remain officially listed on another exchange.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
