New Delhi : Firm on its stand on barring self- listing of stock exchanges, markets regulator Sebi says there is an “evident and clear” conflict of interest risk in such a scenario but it is willing to look into any genuine problems that an exchange may have on this issue.
As per Sebi rules, an exchange cannot list its shares on its own platform and it has to go to another bourse for listing to avoid any conflict of interest that might arise while discharging its duty as a front-line regulator for the securities markets. While leading stock exchange BSE is agreeable to the idea of cross-listing and has also got in-principle approval from Sebi (Securities and Exchange Board of India), its rival NSE is opposed to it and wants to go for self-listing while undertaking a restructuring exercise for complete separation of its commercial and regulatory functions.
Asked about the issue and whether Sebi was open to review its norms to permit self-listing by exchanges, Sebi Chairman U K Sinha said the current law is very clear that self-listing cannot be allowed.
Open to overseas listing: NSE
Terming self-listing a “logical priority”, leading stock exchange NSE has said it is also open to listing elsewhere if supervision is rested with a neutral body that can be the domestic regulator, but not a rival exchange.
The exchange, which has nearly 1,400 companies listed on its platform, is also open to exploring overseas options for its own listing along with its domestic setups for better value for the shareholders.
“For NSE, self-listing is a logical priority. We are also open to listing elsewhere provided supervision is rested with a neutral body, which could be the regulator here, but not a competing exchange,” MD and CEO Chitra Ramkrishna told PTI.
