Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey on Wednesday said the regulator is not currently examining any proposal to permit stock exchanges to trade their own shares on their platforms.
“We are not considering self-listing at this point. If it happens and when it happens, you'll come to know,” Pandey said at an event in Mumbai.
He also said that stock exchanges must ensure that listed companies provide accurate and complete information while meeting disclosure requirements.
The comments come shortly after reports suggested that SEBI could set up a committee to examine regulations related to self-listing of exchanges. The proposed framework, if introduced, could also apply to exchanges that are already listed, according to reports.
Debate over exchange self-listing gains momentum
SEBI is expected to examine issues related to conflict of interest and governance structures before taking any decision on self-listing. Reports had suggested that the primary exchange would continue to have the responsibility of ensuring oversight.
The discussion gained prominence after NSE Chairman Srinivas Injeti said the regulator should reconsider allowing exchanges to list on their own platforms, a day after NSE shares debuted on rival BSE.
SEBI had examined the possibility of self-listing in 2015 but rejected the proposal due to concerns over potential conflicts of interest. Under the existing framework, exchange shares are required to trade on rival platforms.
However, self-listing is allowed in some international markets. In the US, for example, Intercontinental Exchange, the parent company of the New York Stock Exchange, is listed and traded on the NYSE.
NSE listing raises questions on future regulations
NSE dominates India’s equity markets, accounting for around 93% of cash-market trading and nearly 75% of options trading.
Reports have suggested that NSE could seek permission to trade its shares on its own platform through the “permitted to trade” category after its listing on BSE.
Current regulations do not allow a stock exchange to self-list. NSE, classified as a market infrastructure institution, would require SEBI approval before its shares can trade on its own platform.
