SEBI Confirms No Proposal from NSE to Trade Own Shares on Exchange Platform — September 20, 2026

Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey has firmly quashed speculation regarding the National Stock Exchange of India (NSE) trading its own shares on its proprietary platform post-listing. Speaking on the sidelines of the National Bank for Financing Infrastructure and Development (NaBFID) Infrastructure Conclave 2026, the market regulator's chief stated that no formal request has been submitted by the bourse and that current rules do not permit such an arrangement.

"No, there is no such letter, and there is no such requirement," Pandey told reporters, reiterating that it is too early to evaluate such an option and that self-trading cannot be permitted under the present regulatory framework.

Regulatory Conflict and the BSE Listing Mandate

The regulatory clarification arrives against the backdrop of persistent market rumours that NSE might explore the "permitted-to-trade" route. Under that model, securities listed primarily on another exchange can be allowed to trade on a platform without direct listing status.

However, Indian securities laws strictly enforce the separation of market operators from listed entities to avoid severe conflicts of interest. Under Regulation 45(1) of the SEBI (Stock Exchanges and Clearing Corporations) Regulations, 2018, a recognised stock exchange is explicitly prohibited from listing its own shares on its platform and can only list on another recognised bourse. Because stock exchanges operate surveillance systems, regulate broker-members, and act as first-line market supervisors, supervising trades in their own equity shares is disallowed.

Consequently, NSE shares will list and trade exclusively on the BSE, mirroring the precedent set when BSE listed its shares on the NSE in 2017. NSE Managing Director and CEO Ashishkumar Chauhan had also previously stated that the exchange had not moved any application with SEBI to facilitate self-trading.

Details of the Landmark NSE Public Issue

The statement came as NSE's long-awaited initial public offering (IPO) opened for public bidding:

• Issue Size: ₹22,569 crore, making it the country's second-largest IPO after Hyundai Motor India's ₹27,870-crore issue in 2024.
• Structure: A 100% offer-for-sale (OFS) of 12.64 crore equity shares by existing institutional and individual shareholders, meaning no capital proceeds accrue to the exchange itself.
• Price Band: ₹1,700 to ₹1,785 per equity share.
• Valuation: The upper price band values the bourse at approximately ₹4.41 lakh crore (around $53 billion).
• Listing Venue and Timeline: Following anchor allocation of ₹6,746 crore, the subscription window closes on September 21, 2026, with listing scheduled on the BSE for September 24, 2026.

Focus on Market Reforms and UPI MDR Concerns

Beyond the exchange's listing framework, Pandey also addressed broader market developments, highlighting that 80 IPOs have mobilized approximately ₹60,000 crore from primary markets. He noted that the combined assets under management (AUM) of Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) climbed to a landmark ₹9.2 lakh crore at the close of FY26.

Addressing recent anxieties in the brokerage and asset management industries over the newly introduced Merchant Discount Rate (MDR) structure on unified payments interface (UPI) merchant transactions exceeding ₹2,000, Pandey confirmed that SEBI will examine the issues raised by market intermediaries to ease operational constraints.

Tags: SEBI NSE BSE Tuhin Kanta Pandey Initial Public Offering Capital Markets