SEBI may assess NSE liquidity before allowing bourse to trade its own shares
The move could allow the NSE to trade its shares on its own platform without listing there itself
The Securities and Exchange Board of India (SEBI) may evaluate numerous factors, including liquidity, before granting the National Stock Exchange (NSE) the 'Permitted to Trade' (PTT) status. This approval would enable NSE to trade its shares on its platform, bypassing the need for formal listing on another exchange. The decision will hinge on a comprehensive assessment of the potential impacts, particularly on liquidity.
A source familiar with the matter stated that SEBI has not yet made a decision and will proceed after a thorough consideration of all aspects, with a focus on the implications for liquidity. Analysts believe that PTT could lead to increased trading activity on the NSE platform, thereby enhancing liquidity. However, the exchange remains prohibited from listing its shares on its own platform or any exchange controlled by its associates, as per existing regulations.
The current setup mandates that NSE shares should be listed on the Bombay Stock Exchange (BSE). NSE has recently filed its Draft Red Herring Prospectus (DRHP) for an issue of up to 148.9 million equity shares, representing around 6% of the company. The issue size is valued at up to ₹30,000 crore, with NSE not receiving any proceeds from the sale.
Written by urgent.news from Hindu BusinessLine's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
