SEBI may form a panel to consider self-listing norms for exchanges, reports CNBC-TV18; BSE shares fall 2%

Fresh updates from the financial markets indicate that Markets regulator SEBI is likely to form a committee to consider self-stock-exchange debut regulations for exchanges, noted CNBC-TV18 citing sources on September 28.

The self-stock-exchange debut rules, if approved, will additionally apply to already listed exchanges, the channel noted.

SEBI may look to address conflict of interest, governance structure before considering self-stock-exchange debut. First responsibility of oversight is likely to stay with the primary exchange, CNBC-TV18 further noted.

Following the report, BSE shares were trading 2% softer at Rs 3,124.7 apiece.

Markets regulator should reconsider allowing exchanges to list on their own platforms, NSE Chairman Srinivas Injeti stated on Friday, a day after the bourse operator debuted on rival BSE.

SEBI had debated allowing self-stock-exchange debut in 2015 but rejected the idea over potential conflicts of interest, requiring their shares to trade on rival bourses.

That stated, self-stock-exchange debut is permitted in several major global markets. In the United States for example, the New York Stock Exchange's parent Intercontinental Exchange is listed and traded on the NYSE, which it operates.

NSE accounts for around 93% of India's cash-market trading and nearly 75% of options.

Notes have suggested that the NSE could trade on its own exchange via the "permitted to trade" category after stock-exchange debut on the BSE. According to a note by PL Capital, the NSE's move could impact BSE's earnings in FY27 by roughly 1-2 percent based on a sensitivity analysis, in the case that the cash market share does not improve further.

The present regulations do not provide for the self-stock-exchange debut of a stock exchange. NSE, which is classified as a market infrastructure institution, would need approval from the Securities and Exchange Board of India to allow its shares to trade on its own platform.