A circular dated May 7, 2026, by NSE says admission under PTT allows a security to be traded on NSE without being formally listed on the Exchange.
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FRANCIS MASCARENHAS
The Securities and Exchange Board of India (SEBI) is likely to examine various issues, including liquidity, before allowing ‘Permitted to Trade’ (PTT) status for the National Stock Exchange (NSE). The move, once approved, could allow the NSE to trade its shares on its own platform without listing there itself. The listing needs to be done on other exchange.
A highly placed source said SEBI is yet to apply its mind to the proposal and will take a view after evaluating all aspects, including the implications for liquidity. “A call can be taken after considering all the pros and cons of permitting trade, including the liquidity aspect,” the source added.
Market analysts feel that if PTT allowed, there could be possibility of more and more transaction could take place on NSE platform only means more liquidity there, while less on the exchange where it is formally listed.
PTT is different from self-listing. A circular dated May 7, 2026, by NSE says admission under PTT allows a security to be traded on NSE without being formally listed on the Exchange. Such an action is permitted under the Regulations – Part A (Capital Market Segment) of the Exchange. At the same time, the Securities Contracts (Stock Exchanges and Clearing Corporations) Regulations, 2018 prohibit a stock exchange from listing on its own platform or on an exchange operated by its associates.
Conflict debate
There is feeling that if the regulatory framework is amended to allow NSE shares to trade on its own platform, it could raise critical questions regarding market surveillance, conflicts of interest, price discovery and liquidity, as the NSE would effectively serve as both the issuer and the platform operator. Under current regulations, the exchange would have to list its shares on its rival, the BSE, which has been listed since 2017.
Meanwhile, when asked about delay in issuance of observation by SEBI on draft red herring prospectus (DRHP) by NSE, the source said that some changes are expected to be completed by one of the existing shareholders. “Once this change is added in DRHP, then it can be processed further,” he said. In June, NSE filed its DRHP. The proposed IPO consists entirely of an offer-for-sale of up to 148.9 million equity shares, or nearly 6 per cent stake, by existing institutional shareholders, with no fresh equity issue.
Based on the exchange’s unlisted market valuation of about ₹5 lakh crore, the issue size is estimated to be up to ₹30,000 crore. NSE will not receive any proceeds from the offer. The filing follows receipt of a no-objection certificate from the markets regulator earlier this year to proceed with the IPO. The NSE board subsequently approved the IPO proposal on February 6.
Published on August 23, 2026
