BSE Shares Fall Over 2% as SEBI May Review Self-Listing Rules for Stock Exchanges

BSE shares fell more than 2% on Monday after reports indicated that the Securities and Exchange Board of India (SEBI) could review the rules governing self-listing of stock exchanges. 

Invest in Indian Markets and Unlock Future Potential With 5paisa!

Open Account Now

At 2:26 pm, BSE shares were trading 2.18% lower at ₹3,121.20 on the NSE. The stock moved between an intraday high of ₹3,180 and a low of ₹3,104. At that price, the exchange had a market capitalisation of ₹1,27,357.72 crore. 

The development comes just days after the National Stock Exchange made its stock market debut on September 24. 

SEBI may set up panel to examine self-listing framework 

According to the report, citing CNBC-TV18, SEBI may constitute a high-level panel to examine the regulatory framework that would allow stock exchanges to list shares on their own platforms. 

Livemint noted that it could not independently verify the development. 

The proposed review is expected to look at issues such as potential conflicts of interest and the governance structure of exchanges. Under the framework being considered, primary oversight could continue to rest with an exchange’s existing regulator. 

The panel is likely to include market experts and senior SEBI officials. Its recommendations could be submitted within one to one-and-a-half months, according to the report. 

A consultation paper on self-listing may follow the panel’s recommendations. 

What could the proposed rules mean for BSE and NSE? 

If the rules governing self-listing are changed, the revised framework could also cover exchanges that are already publicly listed. 

This could potentially allow both BSE and NSE shares to trade on their respective exchanges. 

The matter has gained attention following NSE’s recent market debut. NSE shares were listed on BSE on September 24 at ₹1,800 apiece, representing a 0.84% premium over the final IPO price of ₹1,785 per share. 

Before the listing, there had also been discussion around whether NSE could eventually list on its own platform under the permitted-to-trade category. 

NSE Chairman Srinivas Injeti had described such a route as being within the realm of feasibility and indicated that the exchange would discuss the matter with the regulator. No timeline was provided. 

Self-listing already exists in overseas markets 

The report also pointed to international examples where exchanges trade on their own platforms. 

Nasdaq Inc is listed on Nasdaq, while Intercontinental Exchange, the parent company of the New York Stock Exchange, trades on the NYSE. 

In India, however, any move towards allowing a similar structure would depend on the regulatory framework established by SEBI. 

For now, the proposed review remains under consideration, with the possible formation of a panel and subsequent consultation process expected to determine how the self-listing framework could take shape.