Time for SEBI to re-consider self-listing of exchanges, NSE chairman says

According to fresh market updates, Markets regulator SEBI should re-consider allowing exchanges to list on their own platforms as the country's capital markets have matured, NSE Chairman Srinivas Injeti stated on September 25, a day after the bourse made its market debut.

Self-stock-exchange debut is permitted in most major jurisdictions, although in India it is viewed as a conflict of interest, Injeti further noted.

NSE dominates India's equity markets, accounting for around 93% of cash-market trading and nearly 75% of options trading.

National Stock Exchange of India began trading as a listed firm on the BSE on Thursday, but a key question around its own platform stays unresolved: whether NSE could eventually seek regulatory approval to list or trade its shares on the exchange it operates.

At a post-stock-exchange debut interaction with the press, NSE's management stated the present regulatory framework does not permit the exchange to list or trade its own shares on its platform, but indicated that the offering could evolve as regulations change.

“Earlier, prior to 2012, even stock-exchange debut was not allowed. A stock exchange or an MII could not list. In 2012, it was allowed,” stated an official. He further noted that if the regulator finds merit in aligning Indian rules with global practices that allow an exchange to list on its own platform, NSE would provide its inputs.

“As the market develops, as things change, if the regulator feels that there is merit in aligning with the global practice of allowing an exchange to list on its own platform or to trade, we will certainly give our input,” he stated.

For now, that stated, NSE stated it would follow the existing framework. “The present framework doesn't allow trading or stock-exchange debut on your own platform,” they further noted.