BSE shares fall over 2%; what is dragging the stock?
Global brokerage Jefferies recently downgraded BSE to 'Underperform', citing concerns around the closing auction session (CAS), a higher securities transaction tax and the RBI's revised bank-guarantee norms.
- Aug 20, 2026,
- Updated Aug 20, 2026 3:22 PM IST
Shares of BSE Ltd slipped in Thursday's trade after opening higher, with the stock falling 2.15 per cent to hit a day's low of Rs 3,280. The decline came after a Bloomberg report said the National Stock Exchange of India Ltd (NSE) is considering allowing its shares to trade on its own platform after formally listing them on rival BSE.
According to the Bloomberg report, citing people familiar with the matter, NSE shares would formally list on BSE but could also trade on NSE under the 'permitted to trade' category. The discussions are private, and any such move would require approval from the Securities and Exchange Board of India (Sebi).
Under the proposal, NSE shares could trade on its own platform under the 'permitted to trade' framework despite being formally listed on BSE, the report said.
The framework allows securities to trade on NSE without being formally listed on the exchange, while their compliance and disclosure obligations remain unchanged, according to NSE's website. NSE revised its index eligibility rules in 2019 to allow such securities to qualify for inclusion in Nifty indexes. Previously, only shares formally listed and traded on the exchange were eligible.
Around 250 companies that are not listed on NSE currently trade on its platform under the 'permitted to trade' category.
The Bloomberg report also said NSE expects to receive Sebi's approval for its draft prospectus by the end of August and is targeting an IPO launch in the second half of September.
Brokerages turn cautious
Global brokerage Jefferies recently downgraded BSE to 'Underperform', citing concerns around the closing auction session (CAS), a higher securities transaction tax and the RBI's revised bank-guarantee norms.
Nuvama Institutional Equities also downgraded BSE to 'Hold' from 'Buy' and cut its target price to Rs 3,240. The domestic brokerage cited the impact of CAS on options volumes, tighter bank-guarantee norms and market-share gains nearing saturation levels as factors behind its revised stance.
What does the long-term outlook look like?
Despite the near-term concerns, market expert Avinash Gorakshkar said the long-term investment case for BSE remains intact.
"In the short term, the changes in the F&O (Futures & Options) segment are definitely going to impact its volumes. But the good part is that the NSE IPO is expected to hit the market in September, and it would get listed on BSE. So, I think, to a large extent, the markets are clearly waiting for this event. Once NSE gets listed, you're going to see a lot of volume activity on BSE. My sense is that you have to see BSE as a long-term structural story," he told Business Today.
Shares of BSE Ltd slipped in Thursday's trade after opening higher, with the stock falling 2.15 per cent to hit a day's low of Rs 3,280. The decline came after a Bloomberg report said the National Stock Exchange of India Ltd (NSE) is considering allowing its shares to trade on its own platform after formally listing them on rival BSE.
According to the Bloomberg report, citing people familiar with the matter, NSE shares would formally list on BSE but could also trade on NSE under the 'permitted to trade' category. The discussions are private, and any such move would require approval from the Securities and Exchange Board of India (Sebi).
Under the proposal, NSE shares could trade on its own platform under the 'permitted to trade' framework despite being formally listed on BSE, the report said.
The framework allows securities to trade on NSE without being formally listed on the exchange, while their compliance and disclosure obligations remain unchanged, according to NSE's website. NSE revised its index eligibility rules in 2019 to allow such securities to qualify for inclusion in Nifty indexes. Previously, only shares formally listed and traded on the exchange were eligible.
Around 250 companies that are not listed on NSE currently trade on its platform under the 'permitted to trade' category.
The Bloomberg report also said NSE expects to receive Sebi's approval for its draft prospectus by the end of August and is targeting an IPO launch in the second half of September.
Brokerages turn cautious
Global brokerage Jefferies recently downgraded BSE to 'Underperform', citing concerns around the closing auction session (CAS), a higher securities transaction tax and the RBI's revised bank-guarantee norms.
Nuvama Institutional Equities also downgraded BSE to 'Hold' from 'Buy' and cut its target price to Rs 3,240. The domestic brokerage cited the impact of CAS on options volumes, tighter bank-guarantee norms and market-share gains nearing saturation levels as factors behind its revised stance.
What does the long-term outlook look like?
Despite the near-term concerns, market expert Avinash Gorakshkar said the long-term investment case for BSE remains intact.
"In the short term, the changes in the F&O (Futures & Options) segment are definitely going to impact its volumes. But the good part is that the NSE IPO is expected to hit the market in September, and it would get listed on BSE. So, I think, to a large extent, the markets are clearly waiting for this event. Once NSE gets listed, you're going to see a lot of volume activity on BSE. My sense is that you have to see BSE as a long-term structural story," he told Business Today.