SEBI Chief Says No Plan As Of Now To Allow Stock Exchanges To Self-List Shares

Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey has stated that the regulator is not presently evaluating a proposal to permit stock exchanges to list their own shares. Pandey made these remarks during an event in Mumbai. He further emphasized that exchanges must ensure listed companies furnish precise and comprehensive information while adhering to disclosure requirements.

This statement follows reports indicating that SEBI might establish a committee to explore regulations concerning self-listing of exchanges, which could potentially encompass existing exchanges as well. The proposed framework, should it be implemented, could also be applicable to exchanges already listed, according to the sources.

The matter has gained traction following NSE Chairman Srinivas Injeti's suggestion that the regulator should revisit allowing exchanges to list on their own platforms, following NSE's debut on BSE. SEBI had previously examined self-listing in 2015 but declined the proposal due to potential conflicts of interest. At present, exchange shares must be traded on rival platforms, although self-listing is permitted in certain international markets.

For instance, the parent company of the New York Stock Exchange, Intercontinental Exchange, is listed and traded on the NYSE. NSE, which dominates India's equity markets with approximately 93% of cash-market trading and about 75% of options trading, could potentially seek permission to trade its shares on its own platform via the "permitted to trade" category post its listing on BSE.

Under current regulations, stock exchanges are not permitted to self-list. NSE, categorized as a market infrastructure institution, would necessitate SEBI's approval for its shares to trade on its own platform.