NSE IPO Update: SEBI Says Bourse Cannot Trade Its Own Shares On Platform Yet; No Formal Request Received
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SEBI has clarified that NSE cannot currently trade its own shares on its platform and said no formal request has been received from the exchange. The comments come as the ₹22,569 crore NSE IPO opens for subscription, with the bourse highlighting its financial performance, investor base and growth opportunities.
The Securities and Exchange Board of India (SEBI) has clarified that the National Stock Exchange (NSE) cannot currently trade its own shares on its platform, saying it is too early to consider allowing the exchange to do so, as reported by NDTV Profit
SEBI Chairman Tuhin Kanta Pandey also said the regulator has not received any formal request or application from NSE seeking permission to enable trading in its own shares on the exchange.
The clarification comes as NSE's ₹22,569 crore initial public offering (IPO) opened for subscription on Thursday, September 17. The issue marks a significant step for the country's largest stock exchange towards becoming a listed company and has brought its ownership, valuation and future trading status into sharper focus.
NSE IPO: SEBI Clarifies Position On Self-Trading
Under the current regulatory framework, NSE will not be permitted to trade its own shares on its platform. Pandey's comments also indicate that there is no proposal before SEBI at present to change this position, as the exchange has not submitted a formal request for such permission.
The issue is separate from NSE's IPO itself. The exchange's shares can be offered to investors through the public issue, but permission to subsequently trade NSE shares on its own platform would require a separate regulatory consideration.
NSE's IPO comprises an offer for sale of 12.64 crore shares, with no fresh issue of equity. The price band has been fixed at ₹1,700-₹1,785 per share. The issue will close on September 21, with the shares scheduled to list on the BSE on September 24.
The IPO has also brought renewed attention to NSE's position in India's equity and derivatives markets, as well as its financial performance and scope for further growth.
NSE Highlights Operating Leverage, Revenue Mix
NSE management has described the response to the IPO as encouraging and pointed to the exchange's scale, profitability and operating leverage as key features of its business.
Operating revenue accounts for around 90% of NSE's total revenue, according to the management. While trading volumes can fluctuate across market cycles, the exchange said transaction-related charges are expected to remain an important source of revenue.
NSE also highlighted its exposure to the derivatives segment. Revenue linked to contract expiry fees accounts for about 46% of operating revenue, although the exchange said it is looking to broaden its revenue base through new products and business segments.
The exchange has also pointed to the size of its existing investor base. Nearly 13 crore Indians are currently trading on NSE, while management sees further scope to expand participation as financial-market penetration increases.
The exchange expects retail participation to remain an important growth area, alongside continued interest from foreign investors in Indian equities.
Primary Market Fundraising Gains Momentum
Pandey also highlighted the wider growth of India's capital markets, with primary-market fundraising reaching record levels.
According to figures shared by the SEBI Chairman, 80 IPOs raised around ₹60,000 crore during the period cited. The numbers underline the continued flow of companies to the public markets as equity fundraising remains an important source of capital.
Alternative investment vehicles have also expanded considerably. The combined assets under management of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) stood at ₹9.2 lakh crore at the end of FY26.
The growth of REITs and InvITs has added another channel for investors to gain exposure to infrastructure and real-estate assets while providing companies with an alternative source of long-term capital.
Also Read - Sensex, Nifty Rebound Despite Fed Rate Hike And Crude Concerns: Is The Market Rally All About NSE IPO?
This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer
Rochelle Britto has spent 8+ years decoding India's markets, businesses, and consumer economy, reporting for ET Prime and Times Internet along the way, covering the stories behind the numbers.
A Mumbai native and perpetual planner of the next holiday, she stays far, far away from the eternal question, “Where are we going next?” When she's not chasing headlines, she's chasing new cultures, open roads, and a bit of quiet in nature.
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