4 hrs ago
Article Calls for Revisiting NSE Self-Listing and Cross-Listing Rules
The National Stock Exchange, or NSE, is discussed as a company that could list its shares.
Indian rules do not currently let a stock exchange list its shares on its own platform.
Regulators worry that an exchange might be unfair if it regulates itself while trying to make money.
Listing shares can also make a company more open and transparent.
Cross-listing on another exchange avoids some conflicts, but it can give a rival access to important information.
The article says exchanges are already watched very closely by the Securities and Exchange Board of India.
It also says new governance rules separate important exchange jobs and add accountability.
Some large exchanges in other countries trade on their own platforms or through listed parent companies.
The author therefore supports allowing both self-listing and cross-listing in India.
Indian regulations currently bar a recognized stock exchange from listing its securities on itself or an associated exchange.
The article argues that stronger governance controls introduced under the three-pillar model could reduce self-listing risks.
Regulators oppose self-listing because exchanges would both operate markets and regulate themselves, creating potential conflicts of interest.
Cross-listing can expose sensitive corporate and operational information to rival exchanges, according to the article.
The article proposes allowing exchanges to use both self-listing and cross-listing to improve liquidity, transparency, and competitiveness.
- Who
- The National Stock Exchange, the Securities and Exchange Board of India, and other market infrastructure institutions are central to the discussion.
- What
- The article calls for revisiting India’s restrictions on stock-exchange self-listing and proposes a hybrid self-plus-cross-listing framework.
- Where
- India, with comparisons to stock exchanges in the United States, Singapore, Hong Kong, the United Kingdom, Japan, Australia, and Canada.
- When
- The relevant listing provisions date from 2012; the regulations were most recently amended on November 22, 2025, while the article says the three-pillar model was implemented by mid-2026.
- Why
- The proposed changes are intended to improve transparency, liquidity, governance, and exchanges’ competitive position while addressing concerns about conflicts of interest.
Self-Listing Proponents
Regulatory Caution
Governance and transparency
Self-Listing Proponents
Listing is generally transparency-enhancing, and the article argues that the three-pillar model and close Securities and Exchange Board of India oversight now provide stronger safeguards.
Regulatory Caution
A self-listed exchange would combine a commercial identity with a regulatory role, creating a potential conflict because it would effectively regulate itself.
Competitive information
Self-Listing Proponents
A hybrid self-plus-cross-listing model could expand liquidity, connect domestic retail activity with international institutional order flow, and reduce competitive disadvantages.
Regulatory Caution
Cross-listing on a rival exchange may require disclosure of proprietary corporate and operational information, giving competitors valuable insight.
Regulatory approach
Self-Listing Proponents
The article says the Securities and Exchange Board of India has sufficient powers, including the threat of delisting, to influence exchange behavior and should reconsider its cautious position.
Regulatory Caution
Existing restrictions and additional conditions protect market integrity, and regulators may prefer cross-listing because it avoids the direct conflict inherent in self-listing.
Key facts
- Current listing restriction
- A recognized stock exchange may not list its securities on itself or its associated stock exchange.
- Cross-listing condition
- The regulations require at least three years of continuous trading operations before an exchange applies for listing.
- Regulatory approval
- An exchange must obtain approval from the Securities and Exchange Board of India before listing.
- Three-pillar model
- Exchange functions are divided into critical operations; regulatory, compliance, risk management, and investor grievances; and other functions including business development.
- First Indian exchange listing cited
- Multi-Commodity Exchange of India listed its shares on BSE in March 2012.
- BSE listing
- BSE listed in February 2017 and cross-listed on the National Stock Exchange.
- Global examples
- The article cites Nasdaq, Singapore Exchange, Hong Kong Exchanges and Clearing, and other listed exchange groups as examples of publicly traded marketplaces.
Sources
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