The Hindu Business Line : Exchanges not to give up regulatory role in near future: SEBI chief

THE Securities and Exchange Board of India (SEBI) Chairman, Mr M. Damodaran, today made it clear that the regulatory responsibility of stock exchanges would not be hived off from them and they would not give up their regulatory role at least for the immediate future.

"Will exchanges give up their regulatory role? Not in the immediate future," he said at a press conference here today. His comment on this issue has a bearing on the possibility of stock exchanges of the country getting listed.

The SEBI Chief's comment came in response to the NSE Managing Director, Mr Ravi Narain's observation that in markets abroad where stock exchanges got listed, the regulatory responsibility of the exchange had been first hived off from the exchange and only the business component in the exchange was left so that the business could thrive.

Otherwise there will be conflict of interest in the exchange listing in itself and having compliance and regulatory responsibilities. In India, it has not occurred, the NSE chief said.

As and when such issues are addressed, NSE would examine the possibility of getting listed. As for the immediate future, NSE has no such plans, Mr Narain said.

IPO norms: On the issue of simplifying the norms for IPOs, Mr Damodaran said that SEBI would soon come up with simplified norms for follow-on public offerings. The main effort would be to make it attractive for listed entities to come up with follow-on issues and at the same time reduce the cost and time for such offerings.

He also said that SEBI would simultaneously announce measures to facilitate easier de-listing from stock exchanges.

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