NSE IPO: Exchange May Seek SEBI Nod To Trade Shares On NSE

The National Stock Exchange (NSE) may eventually seek approval from the Securities and Exchange Board of India (SEBI) to allow its shares to trade on its own platform after its initial public offering (IPO). However, the exchange has not yet approached the regulator.

NSE is currently set to list only on the BSE because SEBI regulations do not permit a recognised stock exchange to formally list its own securities on its platform. Regulation 45(1) of the SEBI Stock Exchanges and Clearing Corporations Regulations, 2018, requires an exchange to list its securities on another recognised stock exchange.

What Is The Proposed Permitted-To-Trade Route?

NSE could explore a “permitted to trade” arrangement, under which its shares would be available for trading on NSE without being formally listed there. The company would remain formally listed on BSE and continue to meet its existing compliance and disclosure requirements.

NSE managing director and chief executive officer Ashishkumar Chauhan said the exchange could consider the proposal at a later stage but had not applied to SEBI. He explained that the IPO restriction was introduced to prevent an exchange from regulating itself.

What Does NSE IPO Pricing And Valuation Look Like?

NSE IPO’s price band has been fixed at ₹1,700–1,785 per share. The upper end is below the ₹2,000–2,100 range that many investors had earlier expected and values the exchange at about ₹4.4 lakh crore.

The lower pricing also led some existing shareholders to resist selling their stakes. NSE initially proposed an offer representing around 6.2% of its equity, but reduced it to 5.11% after shareholders indicated that the proposed price was below their expectations.

What Is The NSE IPO Subscription Status So Far?

Although the IPO is yet to open for public subscription, Mr Chauhan said demand has been stronger than expected. The anchor book, earlier estimated at around ₹9,000 crore, is now expected to be approximately ₹6,000–6,500 crore. Despite the lower estimate, demand is reportedly substantially higher than the number of shares available for allocation.

The issue will reserve portions for local mutual funds, domestic institutions, including pension funds, and foreign portfolio investors. NSE already has more than 2 lakh shareholders and is expected to have 100% free float after listing.

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