Can NSE trade its shares on its own platform?

New Delhi, Aug 20 (IANS) Can the National Stock Exchange (NSE) allow trading in its own shares on its platform? The question has gained prominence after a report suggests that NSE is exploring the ‘Permitted to Trade’ (PTT) route to allow its shares to be traded on NSE while remaining formally listed on the BSE.

NDTV Profit — citing sources — reported that the National Stock Exchange (NSE) is looking to trade its shares on its own platform, while remaining formally listed only on the BSE.

Under the existing regulatory framework, self-listing of a stock exchange is not permitted, it added.

It further noted that the exchange would therefore need approval from the market regulator — the Securities and Exchange Board of India (SEBI) — for its shares to be admitted for trading on its own platform.

However, the PTT framework allows securities to be traded on NSE without being formally listed on the exchange. Companies admitted under the mechanism continue to remain listed on their primary stock exchange.

Earlier in May, NSE had issued FAQs and clarified the framework for securities admitted under the PTT category on its mainboard segment. Under the framework, companies are not required to execute a separate listing agreement with NSE, while existing disclosures made to the primary exchange are considered sufficient.

However, trading in PTT securities remains subject to NSE’s surveillance and regulatory mechanisms.

Securities admitted under PTT can subsequently seek full listing on the exchange, subject to applicable eligibility conditions, while the exchange retains the authority to suspend or prohibit dealings, it added.

If approved for NSE, the arrangement would mean the exchange remains formally listed on the BSE while its shares could also be traded on NSE, giving investors an additional trading venue.

The development comes ahead of NSE’s proposed initial public offering. The exchange filed its draft red herring prospectus with SEBI in June for an IPO comprising an offer for sale of 14.89 crore equity shares.

NSE’s listing plans were first initiated in 2016 but were delayed amid regulatory scrutiny related to the co-location controversy.

Separately, NSE reported an 8.2 per cent sequential decline in consolidated revenue from operations to Rs 4,560 crore for the quarter ended June 30, while net profit rose 8.7 per cent to Rs 3,120 crore.

–IANS

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