NSE trading outage: Calls for more stock exchanges likely to grow

In Jan, Sebi floated a discussion paper proposing to ease ownership norms for new exchanges

The technical glitch at the National Stock Exchange (NSE) on Wednesday is likely to give more credence to market regulator Securities and Exchange Board of India’s (Sebi’s) recent proposal of allowing entry for more exchanges to increase competition in the space.

In January, Sebi floated a discussion paper in which it proposed relaxing ownership rules to allow more entrants in the exchange space, which is seeing a disruption globally with the emergence of new technologies such as block chain.

The jury is still out on the subject. A section of the market believes the liquidity pool should be at a single venue