National Stock Exchange explores trading its own shares via PTT mechanism

The National Stock Exchange (NSE) is reportedly exploring the ‘Permitted to Trade’ (PTT) mechanism to allow its own shares to be traded on its platform while remaining formally listed on the Bombay Stock Exchange (BSE). Under current regulations, stock exchanges are not permitted to self-list, meaning the NSE would require approval from the market regulator, the Securities and Exchange Board of India (SEBI), to utilize this route.

The PTT framework allows securities to be traded on an exchange without a formal listing agreement or additional listing fees, provided they remain listed on a primary exchange. This approach would allow NSE to maintain its primary listing on the BSE while providing investors an additional trading venue on the NSE platform.

This potential move comes ahead of the NSE’s highly anticipated initial public offering (IPO), which is estimated to be worth between ₹1.5 lakh crore and ₹1.8 lakh crore. If the PTT mechanism is used, it could impact the expected surge in trading volume for the BSE, as some of the activity originally anticipated for the BSE might instead remain within the NSE ecosystem.