Review of Securities available for trading under “permitted to trade” category

NSE vide Circular dated March 29, 2023 has announced the Review of Securities available for trading under “permitted to trade” category. The companies admitted for dealing under “Permitted to trade” do not execute the listing agreement with Exchange and therefore do not provide the full disclosures.

Therefore, the process for “permitted to trade” category and accordingly the permitted to trade companies are being reviewed in consultation with and on the advice of the Relevant Authority of the Exchange.

The decisions of the authority shall be informed to the market participants and adequate notice shall be provided before withdrawing the scrip from “permitted to trade” category.

Permitted to Trade Category means a companies shares can be traded even when the shares are not listed on a particular stock exchange. So entities who are only listed on BSE or NSE and are offering their shares for trading (without effectively listing) on BSE or NSE, as the case may be they will now have to enter into a listing agreement soon.


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