NSE Not Permitted To Trade On Own Platform, Too Early For Self-Trading Nod: SEBI Chief

The Securities and Exchange Board of India (SEBI) has ruled out permitting the National Stock Exchange (NSE) to trade shares on its own platform at present, clarifying that it is "too early" to consider such a move and confirming that no formal request has been placed by the bourse. Speaking to NDTV Profit on the sidelines of the NaBFID Infrastructure Conclave 2026, SEBI Chairman Tuhin Kanta Pandey put an end to market speculation regarding self-trading permissions for the country's largest stock exchange.

"Currently, NSE cannot be permitted to trade on its own platform," the SEBI Chairperson said, adding that it is currently ''too early'' to evaluate any such proposal. He further confirmed that the capital markets regulator has not received any formal letter or application from the NSE seeking approval to enable trading of its own shares on its platform.

While addressing industry leaders and stakeholders, the SEBI Chief highlighted the deepening maturity of India's capital markets, underscoring record fundraising in the primary market alongside exponential growth in alternative financing vehicles.

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Primary Market Boom, Rise In Alternate Assets

According to figures shared by Pandey, the primary market witnessed record momentum, with 80 initial public offerings (IPOs) hitting the bourses to raise approximately Rs 60,000 crore. Simultaneously, alternative investment instruments have emerged as major pillars of infrastructure development in India. The combined Assets Under Management (AUM) of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) scaled to a landmark Rs 9.2 lakh crore at the close of FY26.

NSE On IPO Momentum

Responding to market developments in an interaction with NDTV Profit on Thursday, NSE leadership termed the initial public offering (IPO) experience as "very exciting so far," highlighting deep satisfaction with the level of market interest. The bourse shared key insights into its operational resilience, financial profile, and long-term runway:

• Institutional Backing & Phased Debut: NSE revealed that the top 10–12 insurance companies have a 'thumb up' to the issue. Management noted that it has always intended to have a phased participation structure for the IPO.

• The "India Proxy" Argument: Acknowledging the popular market narrative that "NSE is the real proxy for India," the bourse affirmed that the sentiment rings true given the exchange's pivotal role in channelizing capital.

• Financial Model & Operating Leverage: NSE highlighted that strong operating leverage continues to power profitability, with operating revenue making up roughly 90% of total revenue. Despite concerns around derivative volatility, dependence on contract expiry fees stands at just about 46% of operating revenue.

• Trading Trajectory & Revenue Mix: While trading activity has experienced periodic bouts of volume volatility, transaction charges are expected to maintain a healthy trajectory. Going forward, the bourse aims to diversify and build out fresh revenue streams, with new product segments anticipated to roll out over the coming years.

• Structural Market Upside: Underlining the headroom for domestic expansion, NSE noted that nearly 13 crore Indians are now trading on the platform. However, the Indian financial market remains deeply underpenetrated, leaving substantial scope for retail onboarding alongside rising foreign investor appetite for domestic equities.
   

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