SEBI chief says no proposal to allow NSE, BSE to trade their own shares

Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey on Wednesday said the market regulator is not currently considering any proposal to allow stock exchanges such as the BSE and NSE to trade in their own shares, dismissing speculation around the issue. Speaking on the sidelines of the Association of Portfolio Managers in India's annual conference 2026 here, Pandey said there was no such proposal under consideration at present.

His remarks came in response to reports suggesting that SEBI was exploring the possibility of setting up a panel to examine whether stock exchanges could eventually be permitted to trade in their own shares. "There is no such thing going on. It will be, if it happens or when it happens, you will come to know. So, there is no such thing at the moment," he said. On the development of bond indices and derivatives, the SEBI chief said the regulator is working with the Reserve Bank of India (RBI) to finalise draft guidelines.

He noted that draft norms have already been prepared and comments sought from stakeholders, adding that discussions with the RBI are underway to take the process forward. However, he declined to provide a timeline for finalisation of the framework. Pandey also highlighted efforts by SEBI and the RBI to make India a more attractive destination for foreign portfolio investors (FPIs) by streamlining registration and onboarding procedures. He said the regulator has revamped the NSDL portal and introduced the India Market Access portal, along with a common application system that enables investors to track the status of their applications.

According to him, SEBI is increasingly promoting digital onboarding processes, including the use of digital signatures, while also simplifying know-your-customer (KYC) requirements to improve ease of access for foreign investors. Addressing the issue of continuous listing compliance, Pandey stressed that stock exchanges must actively monitor adherence to listing norms to maintain investor confidence in the market. He said investors should be assured that listed entities are genuine companies complying with regulatory requirements.

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