The National Stock Exchange of India Ltd. is considering allowing its own shares to trade on its trading platform following a listing on rival exchange BSE Ltd., according to people familiar with the matter.
The strategy could ultimately shift trading volumes and allow the equity to qualify for NSE benchmark indices.
The possibility was raised with global investors the recent roadshows for the exchange’s upcoming initial public offering (IPO), Bloomberg News quoted as said by the people, who requested anonymity as the talks remain confidential.
The current regulatory frameworks do not allow a stock exchange for self-listing its own shares. Because NSE is classified as a market infrastructure institution, it would require approval from the market regulator Securities and Exchange Board of India (SEBI) to enable trading of its shares on its own exchange, according to sources.
The talks are ongoing, and any implementation hinges entirely on obtaining regulatory permission, the people added.
A representative for NSE didn’t respond to requests for comment.
