SEBI chief says no panel on stock exchange self-listing for now

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.NSE Self-Listing Off The Table After IPO? BSE CEO Flags Regulatory Roadblock Debate over exchange self-listing gains momentumSEBI 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 regulationsNSE 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.

Sebi Chairman Tuhin Kanta Pandey on Wednesday said that the market regulator is not considering self-trading in exchange-traded shares, days after NSE CEO Ashish Kumar Chauhan hinted that the stock exchange may look into the possibility following its debut on the BSE.Pandey noted that the market regulator is not considering any proposal for self-listing at this point. “If it happens or when it happens, you will come to know,” he told reporters on the sidelines of the APMI Annual Conference, saying no Sebi panel is discussing the possibility at present.This comes after NSE’s mega market debut last week and its executive’s remarks, which sparked hopes that the stock exchange could trade its shares on its own platform. NSE CEO Ashish Kumar Chauhan recently said that in India, self-listing of an exchange on its own platform carries perception concerns around conflict of interest.A stock exchange is not a normal listed company. It also runs the market, supervises trading, monitors unusual price moves and acts as a first layer of market oversight. At the same time, Chauhan said it is now time to look at the possibility of self-listing, as the ecosystem has matured.Also read | Will NSE list on its own platform? MD & CEO Ashish Chauhan hints at very likely possibilityHowever, the latest comments by Pandey imply that the market regulator may not be considering any such overhaul at the moment. Currently, NSE shares trade on BSE while BSE shares trade on NSE.NSE shares listed last week at Rs 1,800 apiece on BSE. This marks 0.8% premium over its IPO price of Rs 1,785 apiece, missing grey market estimates. The company’s market capitalisation at the time of debut stood at around Rs 4.45 lakh crore. The stock has now fallen below its IPO price.BSE shares, meanwhile, were added to rival NSE’s benchmark index Nifty 50 today, replacing IT major Wipro. The stock, however, dropped 3% after Goldman Sachs and BNP Paribas sold more than 68 lakh shares of the stock exchange worth over Rs 2,186 crore through bulk deals.Also read | BSE enters Nifty 50: Stock drops 4% after Goldman Sachs, BNP Paribas sell shares worth Rs 2,186 croreDisclaimer: This article has been written by Debaroti Adhikary, who is not a SEBI-registered Research Analyst or an Investment Adviser. Debaroti Adhikary and his/her ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective SEBI-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here.