NSE shares may trade on its platform under 'permitted-to-trade' route: Report
The National Stock Exchange (NSE) is exploring a 'permitted-to-trade' system to allow its own shares to be traded on its platform. This mechanism would enable trading without requiring a formal listing on the exchange itself, provided the shares are listed elsewhere.
Why it matters
This move could significantly increase liquidity and accessibility for NSE shares ahead of its anticipated public market debut.
NSE could soon have its own shares trading on its platform, even as they are already listed on another stock exchange first. The exchange may not need a separate Sebi approval to do this, as the move could come under its existing ‘permitted-to-trade’ system, an industry source cited by news agency PTI said on Thursday.The system allows an exchange to let investors trade shares that are listed on another recognised exchange. But trading on an exchange does not mean the company is listed there.This difference is important. A company has to meet disclosure and compliance rules of the exchange where it is listed.
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