Stories
NSE Considers Listing on Own Bourse as Regulations Evolve
- •NSE management stated current regulations prohibit listing or trading its own shares on its platform, but indicated this could change with evolving rules.
- •An official noted that prior to 2012, stock exchanges were not allowed to list at all, highlighting a precedent for regulatory evolution.
- •NSE would provide input if regulators consider aligning Indian rules with global practices that permit exchanges to list on their own platforms.
- •NSE pushed back against concerns that increased regulatory scrutiny of derivatives would hinder growth, citing broader investor participation.
- •CEO Ashish Chauhan clarified that SEBI's objective is to ensure healthy derivatives market development, protecting retail investors without eliminating the segment.
Key Questions Answered
No, the present regulatory framework does not permit a stock exchange or market infrastructure institution to list or trade its own shares on its platform. However, management indicated that the issue could evolve if regulations change in the future to align with global practices.
NSE shares were listed on the BSE at Rs 1,800 per share, marking a 0.84 percent premium. The post-listing market capitalisation of the company stood at Rs 4,45,500 crore, following an IPO that was subscribed 5.71 times.
CEO Ashish Chauhan stated that SEBI has no opposition to the derivatives market but aims to ensure healthy development that protects retail investors. The regulator is focused on preventing short-duration, expiry-day options from turning into lottery-ticket type trading.
