SEBI Likely To Form Panel On Stock Exchange Self-Listing Rules After NSE Listing Debate
Market regulator Securities and Exchange Board of India (SEBI) is likely to set up a committee to examine the possibility of allowing stock exchanges to list and trade their own shares on their platforms, according to a CNBC-TV18 report citing sources. If introduced, the proposed self-listing framework would also apply to exchanges that are already publicly listed. However, SEBI is expected to…
The Securities and Exchange Board of India (SEBI) may establish a committee to explore the notion of permitting stock exchanges to list and trade their own shares, per a CNBC-TV18 report referencing sources. If enacted, this self-listing framework would also extend to exchanges presently listed on public platforms. However, SEBI is anticipated to initially tackle issues concerning conflicts of interest, governance standards, and regulatory oversight prior to proceeding.
The self-listing debate has gained traction following the listing of National Stock Exchange (NSE) shares on the Bombay Stock Exchange (BSE). NSE Chairman Srinivas Injeti had previously suggested that regulators should reassess the allowance of exchanges to list on their own platforms. NSE Self-Listing Likely Off The Table Post IPO?
BSE CEO Raises Regulatory Concerns In 2012, listing was permitted, with SEBI having previously examined the notion in 2015 but rejecting it due to potential conflicts of interest. Currently, stock exchange shares are mandated to trade on rival exchanges. Self-listing is practised in various international markets, with the US-based Intercontinental Exchange, the parent of the New York Stock Exchange, listed and traded on the NYSE.
NSE currently commands a significant share of India's capital markets, contributing to around 93% of cash-market trading and nearly 75% of options trading. Reports indicate that NSE might seek permission to trade its shares on its own platform under the "permitted to trade" category following its BSE listing. Present regulations necessitate SEBI approval for stock exchanges classified as market infrastructure institutions to trade their shares on their platforms.
Meanwhile, NSE shares dipped below their IPO price on Monday due to selling pressure following their market debut.
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