National Stock Exchange is preparing for its ₹22,000 crore initial public offering but its shares will not trade on its own platform. The exchange has confirmed that it has not applied to the Securities and Exchange Board of India for permission to list or trade its shares on NSE. Instead, the issue will list on Bombay Stock Exchange. The subscription window will open on September 17 and close on September 21. Anchor bidding will take place on September 16 and listing is expected on September 24. The price band has been fixed between ₹1,700 and ₹1,785 per share, offering investors potential upside of nearly 5% from the upper band if listing gains materialise.
The restriction comes from SEBI regulations introduced in 2018 which prevent a recognised exchange from listing its own securities on its platform. The rule was designed to avoid conflicts of interest and governance concerns. If NSE shares were traded on NSE, the exchange would be supervising trading in its own stock. This could raise questions about surveillance, disclosure and investor confidence. Experts believe that even the perception of self regulation could weaken trust among investors.
There was speculation that NSE might use the Permitted to Trade framework to allow trading on its own platform. However, the exchange clarified that no application has been made. The precedent is clear. Bombay Stock Exchange listed on NSE in 2017. Now NSE will list on Bombay Stock Exchange, ensuring compliance with governance norms while marking one of India’s most significant IPOs.
