Shares of the National Stock Exchange of India (NSE) are slated to list on its rival and the country’s only other listed equity exchange, BSE, on Thursday, September 24, 2026, following the successful completion of its initial public offering (IPO), which opened for subscription on September 17.
Through its maiden share sale, NSE is set to raise Rs 22,561.57 crore through an offer for sale (OFS), with 23 shareholders offering up to 12.64 crore shares.
For detailed NSE IPO action, click here
The NSE listing, analysts said, could be strategically positive for BSE by improving its visibility and creating additional opportunities through trading, clearing, settlement and listing-related revenues. However, they expect the direct revenue contribution from NSE shares to remain modest relative to BSE’s overall revenue base.
The bigger potential benefit, analysts believe, could come from increased investor attention, index inclusion, derivatives activity and institutional flows.
NSE listing could benefit BSE beyond trading revenue
Rahul Sharma, Head of Research at Equity99, said the NSE listing could benefit BSE beyond the direct revenue generated from trading in NSE shares.
“The NSE listing is strategically positive for BSE, but I would separate the opportunity into direct volume/revenue impact and the much more important valuation/market-structure impact.”
Sharma believes BSE could gain greater visibility as the exchange hosting the public listing of the country’s largest exchange company. Potential benefits could also come from derivatives-related revenue if an NSE contract eventually develops significant activity, as well as clearing, settlement and listing-related income.
“Definitely greater visibility for BSE as the exchange hosting the country's largest exchange company's public listing, potential derivatives-related revenue if an NSE contract eventually develops significant activity, clearing settlement related incomes, listing related revenues.”
However, Sharma expects the direct revenue opportunity from the NSE listing to remain limited unless NSE shares see exceptionally high trading volumes.
“But still, I would characterize the direct NSE-listing revenue opportunity as modest, unless NSE shares become exceptionally heavily traded. Therefore, I see the NSE IPO as potentially acting as a catalyst for investor attention around the entire exchange industry, rather than simply creating trading revenue from NSE shares.”
Direct revenue opportunity likely to be limited
Harshal Dasani, Business Head at INVasset PMS, said the benefit to BSE is real but needs to be viewed in the context of the exchange’s existing revenue base.
“The benefit is real but should be sized before it is celebrated. Because SEBI's rules bar an exchange from listing on its own platform, every trade in NSE shares after the September 24 debut clears on BSE, and BSE collects the listing fee.”
Dasani said BSE’s revenue in FY26 stood at Rs 4,834 crore, with transaction charges of Rs 3,795 crore driven overwhelmingly by index options rather than cash equities. Cash-market transaction charges are levied in rupees per crore of turnover.
He said that even assuming Rs 2,000 crore a day of trading in NSE shares, the annual revenue contribution would amount to tens of crores, while listing fees would be smaller.
“Even on a generous assumption of Rs 2,000 crore a day of trading in NSE shares, which would make it one of the most active stocks in the country, the annual revenue adds up to tens of crores. Listing fees are capped and smaller still.”
“Set against Rs 4,834 crore, the direct contribution is well under 1% of revenue, and it is less than the volume BSE already adds in a normal quarter, with cash average daily turnover at a record Rs 9,955 crore in June.”
According to Dasani, the more meaningful opportunity could come from the secondary effects of the NSE listing, including potential index inclusion, single-stock derivatives and institutional flows.
“The more meaningful levers are second order: whether NSE shares enter BSE's indices and the single-stock derivatives that follow, and whether the prestige of hosting the country's largest financial listing brings institutional cash flow that stays.”
He also pointed to the MSCI index derivatives agreement signed in August as a potentially larger volume opportunity for BSE than the NSE listing.
Can NSE listing trigger a re-rating for BSE?
On whether the NSE listing could trigger a re-rating of BSE’s shares, Dasani said the listing alone would not be sufficient and could initially put pressure on BSE’s valuation multiple.
“Not on its own, and in the near term the listing works against BSE's multiple more than for it.”
Dasani pointed to the NSE IPO’s anchor book, where Rs 6,746 crore was placed at Rs 1,785 across 98 mutual fund schemes, while foreign investors held 43%. According to Dasani, institutional investors that already own BSE will also hold NSE, providing a direct basis for comparison between the two exchanges.
“The anchor book tells you why: Rs 6,746 crore placed at Rs 1,785 across 98 mutual fund schemes and foreign investors holding 43% means the institutions that own BSE now also own the dominant exchange at roughly low-forties times FY26 earnings, against BSE's multiple near 53 times.”
Dasani said BSE’s premium valuation would need to be supported by its growth differential. He pointed to BSE’s June-quarter profit growth of 62.2% and a 96% increase in derivatives premium turnover, compared with a 15% decline in NSE’s FY26 profit.
“Every fund manager will run that comparison the day NSE settles, and BSE's premium has to be defended by its growth differential, which is substantial: June-quarter profit up 62.2% and derivatives premium turnover up 96% while NSE's FY26 profit fell 15%.”
“That differential is the re-rating case, and it existed before NSE filed.”
Dasani also highlighted a potential overhang for BSE if NSE eventually receives regulatory approval to trade its own shares on its platform through a “permitted to trade” route.
“The overhang that could hurt is the August report that NSE may later seek to trade its shares on its own platform under a ‘permitted to trade’ route, which would take back even the modest volume benefit; it needs SEBI approval under rules that currently bar it.”
Further, Dasani believes BSE’s potential re-rating would ultimately depend more on its ability to increase derivatives market share and capitalise on new products than on NSE shares being traded on its platform.
“The framework: BSE re-rates if it keeps taking derivatives share and the MSCI products launch, not because NSE's shares tick on its screen. Where NSE trades after September 24 sets the benchmark; BSE's own quarterly market-share prints decide the premium,” said Dasani.
Why NSE can't list on NSE
Under Regulation 45(1) of the Sebi Stock Exchanges and Clearing Corporations Regulations, 2018, a recognised stock exchange can list its securities only on another recognised stock exchange. So, NSE cannot trade on NSE after listing.
Listing an exchange is not like any other company. NSE runs the trading system, oversees market activity and acts as the first layer of supervision for listed securities. If its own shares traded on the same platform, the exchange would also be supervising trading in its own stock.
Disclosure: This article has been written by Kumar Gaurav, who is not a SEBI-registered Research Analyst or an investment advisor. Gaurav does not hold any financial interest in the company as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of the EconomicTimes Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment.
