 "National Stock Exchange")
The National Stock Exchange of India (NSE) plans to approach the Securities and Exchange Board of India (Sebi) to discuss cross-listing and self-listing of its shares here and abroad.
Its board of directors had on June 23 given its nod to list in India and abroad. The exchange had said it would file a draft prospectus with the market regulator by January 2017 for domestic listing and another by April for doing so abroad.
“The exchange wants to seek clarity on the matter of overseas listing and will also bring up the topic of self-listing,” said a source.
Another person, however, insisted NSE was reconciled to cross-listing. “The exchange will discuss issues with regard to listing on another exchange and whether the necessary safeguards are in place to ensure neither exchange abuses its regulatory position,” said the person, on condition of anonymity.
NSE declined to specifically comment on the issue.
A few months earlier, it had told this newspaer that it was fine with listing on the rival BSE bourse, if all mandatory disclosures could be directly sent either to Sebi or another regulatory body. Current regulations do not permit exchanges to self-list.
Self-listed stock exchanges abroad include those of Australia, Hong Kong, Singapore, London, the Euronext and Nasdaq.
In January, Sebi had issued a notification amending the Stock Exchanges and Clearing Corporations Regulations, making it easier for exchanges to list. While the norms talk about fit and proper criteria and cross-listing, among other things, there is no mention of foreign listing. Experts say there is no explicit prohibition but doing so might require additional regulatory permission. “The current norms on listing of exchanges might require appropriate amendments,” said Tejesh Chitlangi, partner, IC Legal, a securities law firm.
NSE has appointed Citigroup Global Markets, JM Financial Institutional Securities, Kotak Mahindra Capital and Morgan Stanley India as joint global co-ordinators to manage its Initial Public Offer, with the entity of Cyril Amarchand Mangaldas as legal advisor for the process.
According to an earlier Business Standard report, NSE could get a premium valuation compared to global peers, thanks to the higher growth potential in India. Mauritius-based Veracity Investments recently acquired a five per cent stake in NSE from State Bank of India for Rs 911 crore, valuing the exchange at Rs 18,200 crore.
BSE, its rival and Asia’s oldest bourse, has already filed its draft prospectus with the market regulator for a Rs 1,200-plus crore-IPO.
SEEKING CLARITY
- NSE to meet Sebi to discuss domestic as well as overseas listing
- Sources said NSE was reconciled to cross-listing its shares on BSE
- It wants clarity on the safeguards in place to ensure the other exchange does not misuse its regulatory position
- Experts believe that listing overseas might require additional regulatory permission
- NSE has appointed Citigroup Global Markets, JM Financial Institutional Securities, Kotak Mahindra Capital and Morgan Stanley India as joint global co-ordinators to manage its IPO
- NSE aims to file a draft prospectus by January 2017 for domestic listing, and another for overseas listing by April
