Paving the way for listing of Asia's oldest bourse, Sebi today said it has given in-principle approval to BSE for the initial share sale which is expected in the next 6-9 months.
The proposed IPO has been on the anvil for a long time awaiting regulatory clarity and the market regulator came out with regulations for listing of stock exchanges in January this year.
"We have given in-principle approval to BSE for listing," Sebi Chairman U K Sinha told reporters after the board meeting here.
BSE has already appointed Edelweiss Financial Services the lead merchant banker and AZB & Partners and Nishith Desai Associates legal advisors to the issue.
Soon after Sebi came out with listing norms for stock exchanges, BSE, in January, had sought approval from the Securities and Exchange Board of India (Sebi) for launching the IPO, saying it is in compliance with all the requirements for listing.
The exchange has been seeking nod to get listed for a long time, but necessary clearances have not been forthcoming on one issue or the other.
"The current time-frame is expected to be in the range of 6-9 months. BSE has already appointed merchant bankers for this process," the exchange spokesperson said.
He further said the exchange plans to follow all Sebi regulation and looks to list on another exchange as per the regulator's norms.
While BSE has always been open to cross-listing -- that is, listing its shares on a rival exchange platform -- its competitor National Stock Exchange (NSE) has been against cross-listing on a rival.
To a question on whether the approval has been given for cross-listing or self-listing, Sinha said Sebi norms are very clear that self-listing is not allowed for the exchanges and therefore, this question does not arise.
Earlier, in a letter written to Sebi in January, BSE had informed the watchdog that it is in full compliance with the requirements of the new SECC (Stock Exchanges and Clearing Corporations) Regulations and therefore, it can proceed with its IPO plans.
The exchange had requested Sebi to provide approval "permitting BSE to proceed with the IPO and listing of BSE's shares on a recognised stock exchange".
Sebi, in January, had amended the existing SECC regulations to make it easier for stock exchanges to list their shares through an IPO.
The move follows demand from investors in stock exchanges for listing of the bourses which can provide them an opportunity to unlock the value of their investments.
