SEBI denies proposal to allow NSE and BSE to trade own shares

SEBI Chairperson Tuhin Kanta Pandey has clarified that there is currently no proposal under consideration to allow stock exchanges, such as the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), to trade their own shares. Speaking at the Association of Portfolio Managers in India annual conference, Pandey dismissed speculation that the regulator was forming a committee to study the possibility.

Pandey also addressed the development of bond indices and bond derivatives, noting that SEBI is collaborating with the Reserve Bank of India (RBI). While draft guidelines have been prepared and stakeholder suggestions have been sought, no definitive timeline for implementation has been established.

To attract more Foreign Portfolio Investors (FPIs), SEBI and the RBI are working to simplify registration and onboarding processes. Efforts include redesigning the NSDL portal, launching the India Market Access portal, and developing a shared application system to allow foreign investors to track their application status more easily. The regulator is also promoting digital onboarding through digital signatures and simplified KYC requirements.