NSE shares may trade on its platform under 'permitted-to-trade' route

NSE shares may trade on its platform under 'permitted-to-trade' route Under the permitted-to-trade framework, an exchange can allow trading in shares that are listed on another recognised stock exchange.

Key points

• The distinction is significant as permitted-to-trade is not the same as listing.
• Under the permitted-to-trade framework, an exchange can allow trading in shares that are listed on another recognised stock exchange.
• For investors, the practical outcome is that NSE shares could become available for trading on its own platform even though it would not be listed there.
• The move could become significant for NSE as it prepares for its own public-market debut.
• The same mechanism is being applied by other exchanges.

As the proposed arrangement would fall under the exchange's existing 'permitted-to-trade' framework, an industry source remarked on Thursday (August 20, 2026), the National Stock Exchange (NSE) may allow its shares to trade on its platform after being listed on a rival bourse, without requiring a separate approval from Sebi.

Notably, the distinction is significant as permitted-to-trade is not the same as listing. While a listed firm has disclosure and compliance obligations towards the primary exchange where it is listed, the 'permitted-to-trade' framework only helps investors to purchase and sell the security on another bourse.

Under the permitted-to-trade framework, an exchange can allow trading in shares that are listed on another recognised stock exchange. The firm does not become listed on the exchange where its shares are permitted to trade.

"NSE may not be required to take Sebi approval for allowing its own shares to trade on the platform as far as it lists its shares on another exchange, " the source familiar with the development remarked.

NSE already has more than 200 firms whose shares trade on its platform but are not listed on its platform, suggesting that trading on an exchange does not necessarily mean that the security is listed there.

Meanwhile, the same mechanism is being applied by other exchanges. MSEI and NCDEX together have around 4, 000 firms whose securities are permitted to trade on their platforms even though they are not listed on those exchanges.

As the process reservations trading of securities and does not amount to a fresh listing, such permitted-to-trade arrangements do not involve a separate approval from Sebi for each security.

In practice, the move could become significant for NSE as it prepares for its own public-market debut. If NSE lists its shares on another exchange, the shares could potentially subsequently be permitted to trade on NSE under the existing framework.

Taken together, the developments around NSE shares may trade on its platform under ' permitted-to point to a situation that is still moving, and the coming days should bring more clarity.