The National Stock Exchange of India is exploring a new structure to allow its shares to be traded on its own platform without a formal listing on BSE, in a move that could reshape India’s stock market landscape and influence its landmark IPO valued at $55 billion.
National Stock Exchange of India is considering a structure that would allow its shares to trade on its own platform even if the stock formally lists on rival BSE, according to Bloomberg. People familiar with the discussions said the idea was raised with global investors during recent roadshows for the exchange’s planned initial public offering, and could eventually redirect trading activity and make the shares eligible for inclusion in NSE’s benchmark indexes.
The arrangement would use NSE’s “permitted to trade” category, a mechanism that lets securities change hands on the exchange without being formally listed there. India IPO said roughly 250 companies already trade on NSE under that route, while their compliance and disclosure obligations remain unchanged. The report also said the listing is expected to be one of India’s most closely watched offerings, with a valuation that could reach about ₹5.26 lakh crore, or $55 billion.
The proposal fits with the exchange’s long-running regulatory constraints. In February, NSE chief executive Ashish Chauhan said the bourse could not list its own shares on its own platform under Indian rules, and would instead have to seek a listing on another recognised exchange, such as BSE. Moneycontrol and other Indian outlets reported that the IPO is set to be structured as an offer for sale, meaning existing shareholders will sell down stakes rather than the company raising fresh capital.
BSE investors appeared to react quickly to the report. India IPO said BSE shares fell 3.24% from the day’s high on August 20 after the story circulated. The development underscores the delicate balance in India’s exchange duopoly: NSE is preparing for a landmark float while trying to avoid a listing structure that would conflict with rules designed to prevent an exchange from listing itself.
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