In a major development for the Indian share market, the National Stock Exchange (NSE) is considering a unique plan to allow its own shares to trade on its own platform after its upcoming initial public offering. Current Indian rules state that a stock exchange cannot list its shares on itself to prevent conflict of interest. Because of this, the NSE plans to officially list its shares on its main rival, the Bombay Stock Exchange(BSE).
However, reports reveal that NSE is now exploring the permitted to trade category. Under this special framework, the shares would have BSE as their official home, but retail and institutional investors could easily buy and sell them directly on the NSE platform too.
This big move requires final approval from the Securities and Exchange Board of India (SEBI). If approved, it will give investors deep liquidity on both major exchanges. More importantly, it could eventually make the NSE stock eligible for entry into its own benchmark indices, like the popular Nifty family. Meanwhile, the NSE is targeting its much-awaited IPO launch in the second half of September. Following this breaking news report, shares of the rival BSE saw a sudden dip of over 3% from their intraday high, as market participants closely watch how this dual trading structure will shape future market competition in India.
