NSE says ready for IPO, awaits clarity on listing norms

On the heels of Finance Ministry dusting up the idea of stock exchanges getting listed, the NSE, which has so far appeared undecided on going public, has told its shareholders it is ready to come out with an IPO as and when some clarifications on listing norms are provided.
The oldest exchange, BSE, was the first to approach the Sebi with an IPO document more than a year ago but is yet to get the regulatory approval.
"The NSE is ready to file for an IPO but we need some clarity on certain issues like the fit and proper criteria for investors and also the 5 per cent cap on individual holdings," a source in the know of the development told PTI today.

The move came after its 22 shareholders with more than 1 per cent stake in the exchange such LIC (10.51 per cent), SBI (10.19 per cent), SBI Caps (3.9 per cent), IFCI (5.55 per cent), Stock Holding Corp and IDBI Bank (5 per cent each) among others, met the management here last week and gave their go ahead for the plan.
When contacted a shareholder said the NSE management has told them the exchange was ready to get listed but needs some regulatory clarifications.
"The NSE management said that listing was discussed at the Board level and the exchange was prepared to get listed. However, they are awaiting some clarification on certain regulations to fix a timeline for the IPO," the shareholder, who wished not to be named, said.

Recently, the Government acknowledged regulatory issues in listing of stock exchanges and said the matter was under consideration.

"The issue of listing of stock exchanges is under consideration... There are some regulatory issues in the listing of stock exchanges," Minister of State for Finance Jayant Sinha said this week.
It has been over three years since Sebi notified new rules permitting listing of stock exchanges. In April 2012, the regulator had said 51 per cent in an exchange could be held by the public.
However, the Bimal Jalan Committee was not in the favour of listing of stock exchanges.
As per Sebi norms, exchanges can get listed provided they put in place appropriate mechanisms for tackling conflicts of interest. However, the exchanges are not to be allowed to list on itself.