NSE not averse to self-listing: Ravi Narain

The National Stock Exchange (NSE) today said it is not averse to the idea of listing its shares on its own platform.

"Self-listing requires a very deep thought...We would certainly like to think about it very deeply," NSE Chief Executive and Managing Director Ravi Narain told reporters here.

The Securities and Exchange Board of India (Sebi) suggests three models for exchanges looking to list their own shares. These are the committee model, company model and independent company model.

The market watchdog also feels in the current scenario, the company model may be more suited to the requirements of self-listing.

The Bombay Stock Exchange (BSE) is also readying to list its shares. Last November, a senior BSE official had said that the premier exchange was working towards listing its shares on its own platform.

"We are preparing to get listed. The process is on," the official had said. Last year, the BSE had approached Sebi for a proposed initial public offer and listing.

Listing under the company model involves converting the existing holding structure of the exchange into a wholly-owned subsidiary, or creating a new company, which will monitor the everyday working of the bourse as well as regulator compliance aspects and the conduct of market players.

Listing would help an exchange to unlock greater value of its shares to raise funds, which, in turn can be utilised to enhance their operational and surveillance framework and sytems. This will also make the operations of the bourse more transparent.

The existing financial investors will also benefit from the self-listing of the NSE or BSE as it would help them to exit at an attractive valuation.

Meanwhile, commenting on the extended market hours, Narain said trading has been smooth and there are no issues because of the advancement of trading to 9 am. The exchange decided to advance the trading hours not to increase volume but to 'capture more information', he said.

"As I said, the extension of market hours was never about increasing the volume. It was about capturing more and more information," Narain said.

The BSE and NSE had mid-December advanced trading hours to 9 am form the earlier 9.55 am with a view to better align with the Asian markets. The new timing came into effect from January 4.

Around 12-15 mutual fund houses have joined in the newly-launched mutual funds trading platform of the NSE but the response is modest, Narain said, adding moving ahead more customers are expected to use this facility.

Narain also said that 15-20 per cent of the NSE transactions are currently coming through online. The exchange would be ready to launch trading facility through mobile as and when the market regulator allows mobile trading, Narain said.