SEBI Eyes Self-Listing Rules Shake-Up After NSE Debut, BSE Shares Drop

BSE shares took a hit on Monday, dropping over 2% after reports surfaced that India's market regulator, the Securities and Exchange Board of India (SEBI), is gearing up to review the rules that govern how stock exchanges can list their own shares. This move comes hot on the heels of the National Stock Exchange (NSE) recent successful public listing on BSE, igniting a fresh debate on what 'self-listing' means for India's financial giants. The push for this review was largely sparked by NSE Chairman Srinivas Injeti, who, just days after NSE's IPO, publicly called for a re-evaluation of the existing self-listing norms, highlighting that mature capital markets globally often permit such listings. Currently, Indian rules, specifically Regulation 45 of the SECC Regulations, prevent an exchange from listing its own shares on its platform to avoid potential conflicts of interest. This regulatory tightrope walk aims to ensure fair play and robust governance, preventing a scenario where an exchange might supervise its own trading and compliance. SEBI is reportedly forming a high-level panel, including market experts and officials, to dive deep into this complex issue, with recommendations expected within 60 to 90 days. Following this, a public consultation paper on the self-listing framework could be issued, opening the discussion to broader stakeholders. Investors will be keenly watching to see how these potential changes might reshape the competitive landscape for both BSE and NSE, and what new safeguards SEBI might introduce to maintain market integrity.