A big news is coming for stock market investors. Market regulatory body Securities and Exchange Board of India (SEBI) is considering setting up a new committee on self-listing of stock exchanges. Self-listing simply means that any stock exchange can make its shares available for buying and selling on its own platform. According to a report by CNBC-TV18, the news had an immediate impact on the stock market. Shares of the Bombay Stock Exchange (BSE) fell by 2 percent as the news broke. After this the share price went up to Rs 3,124.7. The entire matter is related to the listing of exchanges on their own platforms.

Prepare for changes in regulations

Under the current rules, no stock exchange in India can be listed on its own platform. If an exchange wants to enter the stock market, it has to be listed on its rival company’s platform. According to the report, SEBI is now going to review this rule. If these new rules are approved, they will also apply to already listed exchanges. However, the biggest challenge for SEBI is to prevent conflict of interest. The panel will first work on improving the governance structure. The primary responsibility for monitoring is expected to lie with the primary exchange.

What is the state of the global market?

The issue of self listing is not new in India. Even in 2015, SEBI discussed this at length. The idea was later rejected citing conflict of interest. But many major markets around the world allow self-listing. Taking the example of America, the Intercontinental Exchange, the parent company of the New York Stock Exchange (NYSE), is itself listed on the NYSE. Its shares are traded there. Recently National Stock Exchange (NSE) Chairman Srinivas Injeti also appealed to SEBI to reconsider this decision. His comments came as his exchange got listed on the BSE just a day ago.

The battle for market supremacy

The dominance of NSE in the Indian stock market is not hidden from anyone. NSE accounts for about 93 percent of cash-market trading. And in options trading also it occupies 75 percent. Some reports have claimed that after listing on BSE, NSE may trade on its own exchange through the “permitted to trade” category. According to research by PL Capital, if NSE does this, BSE’s earnings in FY27 could be impacted by 1 to 2 percent. This situation will arise if there is no improvement in BSE’s cash market share.

The impact is visible on the stock movement

The flurry of new rules has changed the mood of the market. On one hand, the news of SEBI’s new scheme has led to a drop in BSE shares. On the other hand, NSE shares also saw profit booking after a few days of listing in the market. On Monday, NSE shares fell below their initial public offering (IPO) price. Now the eyes of the entire financial world are fixed on SEBI’s next move. If SEBI gives the green light to self-listing, the entire math of the market may change.