Why in News?

• After nearly a decade of regulatory delays, the National Stock Exchange (NSE) is poised to launch its Initial Public Offering (IPO), potentially raising around ₹30,000 crore, which could make it the largest IPO in India’s history.
• The proposed public listing has generated considerable interest among institutional and retail investors.
• A key unresolved issue is whether NSE will eventually be permitted to trade its own shares on its platform, despite regulations prohibiting an exchange from listing itself.

What’s in Today’s Article?

• Regulatory Hurdle - The Self-Listing Problem
• Why Trading NSE Shares on NSE Matters?
• IPO Timing and Valuation
• Significance for Investors and the Economy

Regulatory Hurdle - The Self-Listing Problem:

• Conflict of interest:
  • Under existing SEBI regulations, a stock exchange cannot list its own shares on its platform.
  • Exchanges function as first-level regulators for entities listed and traded on them.
  • Self-listing could therefore create a conflict of interest, as an exchange would effectively regulate itself. NSE's proposed solution is the Permitted-to-Trade (PTT) route.
  • Under this mechanism -
    • NSE shares would initially be listed on BSE.
    • NSE would subsequently submit a proposal to SEBI seeking permission for its shares to trade on NSE without being listed there.
    • BSE would remain the primary listing platform and bear the principal compliance responsibility.
    • NSE would establish standard operating procedures for surveillance, price bands and other trading functions to mitigate conflicts of interest.
    • If SEBI approves the proposal, NSE shares could trade on NSE through the PTT mechanism.
• Regulatory precedent:
  • The proposal faces a significant precedent. For example, SEBI rejected BSE's similar PTT proposal when BSE listed in 2017, citing concerns over conflict of interest.
  • SEBI Chair Tuhin Kanta Pandey has indicated that the regulator has not yet substantively considered the issue.
  • BSE MD Sundararaman Ramamurthy has opposed the idea, arguing that self-trading is currently not supported by the regulatory framework.

Why Trading NSE Shares on NSE Matters:

• Liquidity and market reach:
  • NSE dominates India's equity and derivatives markets, accounting for approximately -
    • 93% of cash-market turnover
    • Nearly the entire futures premium
    • Around 75% of options premium
  • Allowing NSE shares to trade on its own platform could therefore provide them with greater liquidity, visibility and investor participation.
• Index inclusion and passive flows:
  • Trading on NSE could also facilitate inclusion in major NSE indices such as the Nifty 500 and Nifty Financial Services.
  • Such inclusion could generate additional demand through passive mutual funds and index-tracking investments.
  • The PTT mechanism is not unprecedented in practice - around 250 companies that are not listed on NSE are nevertheless permitted to trade on its platform.

IPO Timing and Valuation:

• The NSE IPO arrives amid a revival in India's primary market after a period of weakness linked partly to the West Asia conflict and concerns surrounding the AI-driven global market environment.
• Around 73% of funds raised through mainboard IPOs in 2026 had come during July and August, highlighting the recent acceleration in IPO activity.
• Despite several other large issues competing for investor attention, NSE's scale, market dominance and brand value are expected to distinguish its offering.
• Brokerages have estimated a potential price-to-earnings (P/E) multiple of 35–49 times FY26 earnings.
• The final valuation will depend on the IPO price band, expected to be announced around mid-September.
• Reports suggest that mutual funds may be comfortable with a price of roughly ₹1,800 per NSE share, implying a P/E multiple of approximately 43–45 times.

Significance for Investors and the Economy:

• NSE's IPO represents more than a large capital-market transaction.
• It marks the potential public-market transformation of one of India's most systemically important financial-market institutions.
• Its attractiveness rests on India's -
  • Rising financialisation of household savings
  • Increasing retail participation in capital markets
  • Low penetration of equity investment relative to the size of the population
  • Growing derivatives and digital trading ecosystem
  • Expanding role of market infrastructure institutions
• However, NSE's recent revenue and profit pressures, partly associated with regulatory changes in the derivatives segment, highlight the importance of balancing its growth potential against valuation and regulatory risks.
• The broader policy challenge is to balance market efficiency and competition with regulatory neutrality, transparency and prevention of conflicts of interest.

Why in the News?

• The 26^th Summit of the Shanghai Cooperation Organisation (SCO) was held in Bishkek, Kyrgyz Republic, on August 31-September 1, 2026. The summit marked 25 years of the organisation, which was established in 2001.

What’s in Today’s Article?

• About SCO (Background, Areas of Cooperation)
• News Summary (Significance for India, Challenges, etc.)

Shanghai Cooperation Organisation: Background

• The SCO originated from the Shanghai Five, comprising China, Russia, Kazakhstan, Kyrgyzstan and Tajikistan.
• The grouping was formally established as the SCO on June 15, 2001.
• India and Pakistan became full members in 2017, expanding the organisation's geographical and strategic significance.
• The SCO does not have a collective defence mechanism. Instead, it functions as a platform for political dialogue, security cooperation, counter-terrorism, economic engagement and regional coordination.
• The organisation currently operates through 29 charter bodies and more than 40 working mechanisms, providing regular channels for interaction among member states.

Key Areas of SCO Cooperation

• Counter-Terrorism and Security
  • Countering terrorism, separatism and extremism remains a central objective of the SCO.
  • At the Bishkek Summit, the declaration strongly condemned terrorism. This was particularly significant for India, which has consistently advocated a zero-tolerance approach to terrorism and opposed double standards in counter-terrorism efforts.
  • India also highlighted the importance of peace and stability in Afghanistan and called for an inclusive government in the country.
• West Asian Conflicts
  • The Bishkek Declaration expressed deep concern over military strikes against Iran and reaffirmed support for Iran's sovereignty and territorial integrity.
  • The SCO also emphasised the peaceful use of atomic energy, supporting the inalienable right of states to develop nuclear energy for peaceful purposes.
  • On the Palestine issue, member states stated that a just settlement of the Palestine question was essential for lasting stability in West Asia.
• Connectivity and Sovereignty
  • India supported greater connectivity between markets of SCO member states, while emphasising respect for sovereignty and territorial integrity.
  • This position is significant because India has consistently opposed the China-Pakistan Economic Corridor (CPEC) due to its passage through Pakistan-occupied territory.
  • The SCO declaration supported the Belt and Road Initiative (BRI) and advocated its alignment with the Eurasian Economic Union. India, however, did not endorse the BRI.

News Summary: India’s Engagement with the SCO

• India has used the SCO as an important platform for pursuing its diplomatic and strategic objectives since joining in 2017.
• At the Bishkek Summit, Prime Minister Modi emphasised “no double standards” in fighting terrorism and highlighted India's humanitarian assistance to Afghanistan. India's position on connectivity also reflected its emphasis on territorial sovereignty.
• The summit was particularly important because Pakistan assumed the chairmanship of the SCO, with the next summit scheduled to be held in Pakistan.
• India's participation will therefore require careful diplomatic consideration given the deterioration in India-Pakistan relations following the Pahalgam terror attack, Operation Sindoor and the subsequent decision regarding the Indus Waters Treaty.
• The SCO nevertheless provides India and Pakistan with a multilateral setting for sustained engagement. Such institutionalised interaction can help prevent bilateral tensions from escalating or spilling over into wider regional instability.

Significance of the SCO for India

• The SCO provides India with access to a multilateral platform involving China, Russia, Iran and Central Asian countries. It enables India to:
  • Engage simultaneously with major Eurasian powers.
  • Advance cooperation against terrorism and extremism.
  • Participate in discussions on Afghanistan and regional security.
  • Strengthen economic and connectivity linkages with Central Asia.
  • Maintain diplomatic channels with China and Pakistan.
  • Engage Russia and Iran within a broader multilateral framework.
• The organisation also provides an avenue for discussing global issues such as international security, missile defence, maritime connectivity and alternative financial mechanisms.
• The proposed establishment of an SCO Development Bank and discussions on greater use of local currencies indicate efforts towards deeper financial and economic cooperation among member states.

Challenges

• The SCO faces structural limitations because its members have significant geopolitical differences.
• India and China continue to have unresolved border issues, while India and Pakistan face deep bilateral tensions.
• Similarly, members have different positions on conflicts such as Ukraine and West Asia. The organisation's consensus-based functioning can therefore make substantive collective action difficult.
• Nevertheless, the SCO's survival for 25 years despite these differences demonstrates the continuing relevance of multilateral dialogue and institutionalised engagement.

Conclusion

• The Shanghai Cooperation Organisation has evolved into an important Eurasian multilateral platform.
• For India, its significance lies not only in security cooperation but also in maintaining diplomatic engagement with China, Russia, Iran, Central Asia and Pakistan.
• Despite internal differences, the SCO provides India with strategic space to pursue its interests, advocate counter-terrorism, promote regional connectivity and maintain dialogue in an increasingly fragmented international order.

About Gollala Gudi Temple:

• It is an ancient temple located at Palampet in the Mulugu district of Telangana.
• It is dedicated to Lord Shiva.
• The Kakatiya-era temple is located near the UNESCO-listed Ramappa Temple (Kakatiya Rudreshwara) and is renowned for its exquisite carvings and architectural heritage.
  • The Kakatiya dynasty was a Telugu dynasty that ruled most of the eastern Deccan region in present-day India between the 12th and 14th centuries.
  • Its territory spanned present-day Telangana and Andhra Pradesh, parts of eastern Karnataka, northern Tamil Nadu, and southern Odisha.
• Architecture:
  • Built during the height of the Kakatiya dynasty, Gollala Gudi exemplifies the engineering and stone craftsmanship typical of the Deccan era.
  • Like Ramappa, it was raised without binding mortar, using precisely interlocked dry masonry.
  • It is a "Trikutalaya" (shrine with three sanctums), comprising a mandapa (pillared hall) facing east and three garbhagrihas (sanctum sanctorums), with the central sanctum housing a Shiva lingam.
  • Its parapet is adorned with sculptures, while the entablature and doorways feature rows of carved hamsas with “jali” (latticework) — among the temple’s distinctive features.
  • Two detached shrines stand in front, intricately carved and adorned with figures of “dvarapalas” (door guardians), with antechambers decorated by fine cornices and screens.
  • The main temple has a portico leading to a central hall with three shrines and antechambers to the north, south, and west.
  • Its walls carry niches with images of Vishnu, Lakshmi, Ganesha, and Mahishasuramardini—an epithet of the goddess Durga meaning “slayer of the demon Mahishasura.”

About Rudra Raptors Exercise:

• It is a high-intensity joint military exercise conducted by the Konark Corps of the Indian Army.
• It was conducted in the forward areas of the desert sector in Jaisalmer, Rajasthan.
• Theme: “One team, one purpose, absolute battlefield dominance”
• The exercise witnessed joint integrated training and active participation from the elite helicopters of ‘Thar Raptors’ such as AH-64E Apaches, and tanks of the ‘Black Mace’ Brigade.
• Black Mace Brigade is the Rudra all-arms formation under Konark Corps, which the Army validated during Exercise Akhand Prahar in 2025 as a combined-arms unit grouping armour, mechanised infantry, artillery, air defence, and support elements under one headquarters.
• The exercise was aimed at establishing seamless synergy between aerial and ground combat capabilities, as well as validating integrated battle strategies for realistic battlefield conditions.
• During the joint training, attack helicopters and tanks executed operational activities in tandem to demonstrate coordinated actions between aerial and ground military assets.

About Alexander Disease:

• It is a rare genetic disorder that progressively damages the nervous system.
• It is a type of leukodystrophy, a group of conditions that affect the white matter of the brain.
• These diseases damage the myelin sheath, which surrounds and protects the nerve cells in the brain and spinal cord and speeds transmission of messages between cell
• In Alexander disease, the myelin insulating the nerve fibers in the brain deteriorates over time, and abnormal clumps of protein, called Rosenthal fibers, accumulate in the brain.
• This causes the nervous system to stop working properly.
• Cause:
  • Most cases of Alexander disease are caused by a mutation in the GFAP gene, which directs the body’s production of a glial fibrillary acidic protein (GFAP).
  • At normal levels, GFAP supports the brain’s white matter (the myelin sheath).
  • The mutation of this gene in Alexander disease causes this protein to accumulate.
  • Instead of helping maintain the brain’s white matter, the extra GFAP does the opposite, killing other cells and damaging the myelin.
  • In most cases, the gene mutation associated with Alexander disease is not inherited from a parent.
  • It is simply a random mutation and is new in the person who develops the syndrome.
  • In some cases, Alexander disease is inherited from a similarly affected parent.
• Symptoms:
  • Most cases of Alexander disease begin before age 2 and are described as the infantile form.
    • Signs and symptoms of the infantile form typically include an enlarged brain and head size (megalencephaly), seizures, stiffness in the arms and/or legs (spasticity), intellectual disability, and developmental delay.
  • Less frequently, onset occurs later in childhood (the juvenile form) or in adulthood.
    • Common problems in juvenile and adult forms of Alexander disease include speech abnormalities, swallowing difficulties, seizures, and poor coordination (ataxia).
  • Rarely, a neonatal form of Alexander disease occurs within the first month of life and is associated with severe intellectual disability and developmental delay, a buildup of fluid in the brain (hydrocephalus), and seizures.
• Treatment:
  • There is no complete cure for Alexander disease, but the U.S. FDA recently approved Zanvastro (zilganersen), which is the first disease-modifying therapy that directly targets the underlying protein buildup driving the condition.
  • The disease is often fatal.

About Sukhna Lake:

• It is an artificial lake located in the city of Chandigarh at the foothills of the Shivalik hills.
• It came into existence in 1958 when the Sukhna Choe, a seasonal stream originating from the Shivalik Hills, was dammed.
• Initially spanning 230 hectares, the lake’s area diminished to approximately 154 hectares by 2007 due to siltation, leading to the creation of the Sukhna Lake Reserve Forest.
• Over time, the water level dropped from 5 meters in 1958 to 2 meters by 2004, exacerbated by significant soil erosion from the 4,200-hectare catchment area.
• The water flowing into the lake is heavily loaded with silt. Due to higher run-off, there is an accelerated pace of erosion in the catchment areas, resulting in the higher rate of sedimentation in the reservoir of Sukhna Lake and streambeds.
• The lake is fringed by a golf course to the south, and the famous Nek Chand Rock Garden of Chandigarh to its west.
• The lake is declared a National Wetland by the Government of India.
• During winter, Sukhna Lake transforms into a haven for diverse migratory birds such as Siberian ducks, storks, and cranes, hosting around 30 resident and migratory species.
• The lake is also a part of the Sukhna Wildlife Sanctuary.
• Sukhna Lake has the longest channel for rowing and yachting events in Asia.

About Alpheus vembanadi and Alpheus hari:

• They are two new species of pistol shrimp.
• They were discovered in the Kochi backwaters of Kerala. The specimens were collected from gillnets, a traditional fishing method used in the backwaters.
• The first species, Alpheus vembanadi, has been named after the Vembanad backwaters.
  • It is found in the Kochi backwaters throughout the year and can survive in waters with salinity levels of up to 31 parts per thousand (ppt).
• The second species, Alpheus hari, was named in honour of Dr. M. Harikrishnan, Senior Professor at CUSAT’s School of Industrial Fisheries.
  • The species has a notable ability to tolerate changes in salinity.
  • Researchers found it in waters with very low salinity, while laboratory studies showed that it can also survive in freshwater.

Key Facts about Pistol Shrimp:

• Pistol shrimp, also known as snapping shrimp, are a crustacean in the family Alpheidae.
• There are hundreds of species found all over the world, but most species are found in reefs and seagrass beds in temperate and tropical regions.
• They have one small claw called a pincer and a much larger claw-like snapper.
• Some shrimps have snappers that are bigger than half its body.
• The snapper is the shrimp’s weapon for killing or stunning prey.
• However, they don’t grab or choke prey the way a crab does. Instead, the snapper has a complex mechanism that gives it much more power.
• By rapidly snapping the snapper shut, the shrimp creates a cavitation bubble that collapses with a loud snapping sound.
• This snap can stun or even kill small prey, which the shrimp then consumes.

About Stegodyphus sarasinorum:

• It is a colonial spider species.
• It is also called an Indian cooperative spider or an Indian social spider.
• Distribution: It is found across the Indian subcontinent.
• Habitat: It inhabits the semi-arid areas of the central and southern states.
• Characteristics:
  • It lives in permanent colonies, constructs communal silk nests and captures prey cooperatively.
  • The colony composition of S. sarasinorum is dominated by females.
  • It is among only a small number of permanently social spider species known worldwide.
  • They hunt and feed communally, and live in cooperatively built nests of silk and other matter.  These nocturnal spiders feed together.
  • Sexual dimorphism is observed among sarasinorum where males are smaller than females and darker in colour.