 "Sebi might decide soon on self-listing by a bourse")
The BSE stock exchange, which filed its offer document last week for an Initial Public Offer (IPO) of equity, has proposed to list on rival National Stock Exchange (NSE), as the current rules don’t allow self-listing.
However, it also appears the Securities and Exchange Board of India (Sebi) is considering whether to allow self-listing for domestic exchanges. Investment bankers handling the BSE issue said they would amend the offer document if Sebi allows self-listing.
BSE declined to comment on the issue. “(We) have in-principle approval from NSE for the listing,” it has said in its offer document.
“BSE has never expressed any reservations on listing on any other exchange. However, if Sebi reconsiders its stance on self-listing before BSE’s public offer, it goes without saying it would self-list and make necessary changes to its offer document,” said another banker to the issue.
Sources say Sebi is likely to take a call on the self-listing issue before it gives a nod to BSE’s IPO. Typically, Sebi takes about two months to clear IPO documents. The market regulator is seeking views of an internal panel and is likely to take a final call on self-listing soon, say sources.
BSE’s bigger rival, NSE, has been making a case for self-listing with the market regulator. The exchange wants Sebi to either allow self-listing or allow filing of mandatory disclosures directly with Sebi or an independent regulatory body
Current provisions say “a recognised stock exchange may apply for listing of its securities on any recognised stock exchange, other than itself and its associated stock exchange”.
BSE last week filed its offer document with Sebi to allow its existing investors to sell 29.95 million shares (27.43 per cent stake) through an IPO.
