BSE Ltd.'s shares fell 2.7% in trade on Monday after sources told NDTV Profit that the Securities and Exchange Board of India is set to form a high-level panel to revisit self-listing rules.
The move comes in the backdrop of National Stock Exchange Ltd.'s recent listing on BSE. During the listing process, NSE CEO and MD Ashishkumar Chauhan said that the exchange will abide by SEBI's norm of not letting exchanges list on their own platform.
The stock fell to a low of Rs 3,104, but pared some losses to trade 2.2% lower at Rs 3,121.40 as of 1:33 p.m.
SEBI May Revisit Self-Listing Norms
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.
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