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SEBI to weigh NSE liquidity before allowing own-share trading
SEBI is likely to examine liquidity concerns before granting PTT status to NSE, which would let the exchange trade its shares on its own platform without listing there, a source said.
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SEBI is likely to examine liquidity issues before allowing the National Stock Exchange to trade its own shares under the Permitted to Trade status, a person familiar with the matter said.
The regulator has not yet formed a view on the proposal and will evaluate all aspects, including implications for market depth, the source said. "A call can be taken after considering all the pros and cons of permitting trade, including the liquidity aspect."
A May 7 circular from NSE says admission under PTT lets a security trade on the exchange without being formally listed there. The Securities Contracts (Stock Exchanges and Clearing Corporations) Regulations, 2018 bar a stock exchange from listing on its own platform or on an exchange run by its associates. That means NSE would need to list its shares on a rival exchange, most likely BSE, which has been listed since 2017.