- SEBI plans to form a high-level panel to review self-listing rules for stock exchanges
- The panel will include market experts and SEBI officials with a 60-90 day deadline
- Recommendations may lead to a consultation paper on self-listing regulatory framework
Capital markets regulator Securities and Exchange Board of India (SEBI) is set to form a high-level panel to examine rules governing self-listing of stock exchanges, sources told NDTV Profit.
The panel is likely to comprise market experts and SEBI officials and is expected to submit its recommendations within 60-90 days, sources said. Based on the panel's recommendations, SEBI may issue a consultation paper on the framework for self-listing.
One proposal under consideration is that the primary exchange could retain compliance oversight even after self-listing, aimed at addressing potential conflict-of-interest concerns.
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The development comes after NSE Chairman Srinivas Injeti called for a reconsideration of the existing self-listing rules. Injeti said capital markets have matured and noted that self-listing is permitted in most major jurisdictions.
Last week, the equity shares of National Stock Exchange (NSE) were listed on the BSE after its Rs 22,568.94-crore IPO received strong demand.
NSE shares are currently listed on the BSE, while any potential self-listing on NSE could raise questions around the exchange's role as both a listed entity and a market regulator, making governance and conflict-of-interest safeguards a key consideration.
Reacting to the report, BSE share price declined more than 2% during Monday's trading session. BSE stock price fell as much as 2.4% to Rs 3,112.10 apiece on the NSE.
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