NSE IPO: BSE CEO Says NSE Cannot List on Own Platform After Public Issue

Speaking to CNBC-TV18, Ramamurthy says, “NSE has confirmed no addendum will be issued for self-trading along with offer document.”

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BSE Managing Director and CEO Sundararaman Ramamurthy said the National Stock Exchange (NSE) has confirmed that it will not issue an addendum to its offer document regarding self-trading on its own exchange. He added that self-listing is not permitted under the current regulatory framework.

Speaking to CNBC-TV18, Ramamurthy said, “NSE has confirmed no addendum will be issued for self-trading along with offer document.”

He also pointed out that BSE had sought permission to trade on its own exchange in 2017 but was not allowed to do so.

“BSE was not allowed to trade on its own exchange despite trying to get permission for it in 2017,” Ramamurthy said.

The comments come amid reports that NSE could potentially trade on its own exchange through the “permitted to trade” category after its proposed listing on BSE.

According to a note by PL Capital, such a move could have a limited impact on BSE’s earnings in FY27. Its sensitivity analysis suggests that BSE’s earnings could be affected by around 1-2 per cent if NSE begins trading on its own platform and BSE’s cash market share does not improve further.

Recently, Sebi Chairman Tuhin Kanta Pandey said that the regulator is very close to approving the National Stock Exchange’s (NSE) Draft Red Herring Prospectus (DRHP), which will clear the decks for the largest equity bourse’s initial public offering (IPO).

Meanwhile, on NSE’s IPO, Pandey said the market regulator will assess the NSE proposal to allow its shares to trade on its own platform if and when such a proposal is received.

“No proposal received yet from NSE; we will assess when it comes,” Pandey said.

While addressing the conference, Pandey called for a shift from measuring risks in the securities market to anticipating them, with interconnectedness among financial institutions, technology failures and liquidity shocks emerging as key areas of concern.

“Risk can no longer be understood only by looking at individual institutions. We must also understand the relationships between them,” Pandey said.

He said the risks faced by the securities market have evolved beyond settlement, counterparty failure and default of clearing members, requiring greater focus on network-level and system-wide risks.

A clearing member may be financially sound on its own, but common exposures can create concentrations across the system, Pandey said.

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If the National Stock Exchange (NSE) begins trading on its own platform and the Bombay Stock Exchange’s (BSE) cash market share does not improve further, BSE’s earnings in FY27 could be reduced by approximately 1% to 2%.

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