- BSE shares fell 1.51% to Rs 3,301.20 on NSE after a news report on NSE listing
- BSE stock dropped over 3% from its day's high amid NSE's potential share listing plans
- NSE may list shares on BSE but allow trading on its own platform, Bloomberg reported
BSE share price fell from its day's high on Thursday after a latest news report regarding the potential listing of the National Stock Exchange of India Ltd (NSE) shares. BSE shares fell as much as 1.51% to Rs 3,301.20 apiece on NSE. The stock was down more than 3% from its day's high.
The National Stock Exchange of India Ltd. is looking to allow its shares to trade on its own platform, while remaining listed only on the BSE, sources told NDTV Profit.
The move could eventually shift trading volumes and pave the way for the stock's inclusion in NSE's benchmark indexes.
Under the proposal, NSE shares could trade in the “permitted to trade” category even though they would formally list on BSE, the report added.
However, the present regulations do not allow self-listing of a stock exchange. Thus, NSE would need approval from market regulator Securities and Exchange Board of India (SEBI) to allow its shares to trade on its own platform.
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If allowed, the move is likely to give NSE shares access to liquidity on both exchanges while retaining BSE as the primary listing venue.
It was earlier reported that NSE expects to receive Sebi's approval for its draft prospectus by the end of August and is targeting an initial public offering (IPO) launch in the second half of September.
What is ‘Permitted to trade' framework?
The “permitted to trade” framework allows securities to trade on the NSE without being formally listed. However, their compliance and disclosure obligations remain unchanged, according to NSE's website.
NSE revised index eligibility rules in 2019 to allow such securities to qualify for inclusion in the Nifty indexes.
About 250 companies that aren't listed on NSE currently trade on its platform under the permitted-to-trade category.
At 2:00 PM, BSE share price was trading 1.25% lower at Rs 3,310.00 apiece on the NSE.
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