SEBI is examining a “permitted-to-trade” framework related to the National Stock Exchange (NSE), under which NSE shares would be allowed to trade on its own platform. The regulator is evaluating the proposal as part of its oversight of market structure and trading mechanisms.
In the assessment, liquidity concentration is highlighted as a key factor. This refers to the risk that trading and liquidity may become overly concentrated in specific participants or market pockets, which could affect fair trading conditions and market integrity. Based on the reported focus, SEBI’s review weighs how the framework would operate in practice on NSE’s platform, including how liquidity would be distributed.
The outlets covered the same core development and emphasize that SEBI’s decision-making will depend on the framework’s safeguards around liquidity concentration. At this stage, the reporting does not indicate a final approval or denial, only that the regulator is studying the proposal.
