SEBI Executive Director Murlalidhar Rao said here on Saturday that the regulator would not come in the way of an arrangement between a regional stock exchange and a clearing corporation, provided the deal followed the existing regulations.

“It is a commercial arrangement and SEBI would not interfere in it”, he told Business Line on the sidelines of a CII meet here.

National clearing corporation

Following a proposal, SEBI had last year set up the K V Kamath Committee to look into the concept of a “national clearing corporation” which can handle clearing work in a unified manner in the country.

“The committee may clear ambiguities that currently exist in terms of coordinated clearing function and trading risk management,” said a senior official of the National Stock Exchange.

The panel report is expected to bring about necessary clarity as well as a roadmap for functional synergies among the two existing clearing corporations and the proposed national architecture.

Survival of regional stock exchanges

Linked with this is survival of some of the regional stock exchanges, most of which have already on their way out. The Calcuatta Stock Exchange, the only regional stock exchange that met all other regulatory criteria for survival, however, has stumbled on to a roadblock in having an independent clearing mechanism.

He said the regulator was in touch with the Government regarding compliance issues over the minimum prescribed public holding of 25 per cent in listed PSUs as well as over rationalisation of securities transaction tax, sought by market intermediaries to stay competitive.

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