SEBI’s proposal to let exchanges grow beyond trading
Executive Brief • Key Highlights
Fast factual intelligence distilled for busy investors, executives, and answer bots:
- ✓SEBI proposed on 22 October that stock exchanges and depositories can start new businesses without prior approval.
- ✓These institutions currently need permission for many activities.
- ✓The regulator wants to help them grow by using their data and technology talent.
Story at a Glance
- Category
- MARKET
- Reported By
- Business Line
- Reading Speed
- 4 Minute(s)
- Market Focus
- India Economy
Every trade on an Indian screen rests on a quiet layer of institutions that most investors never think about. Stock exchanges, depositories and clearing corporations, together called Market Infrastructure Institutions (MIIs), are the plumbing of our capital markets.
SEBI now wants to give the exchanges and depositories among them more room to grow. In a consultation paper issued on 22 October, the regulator proposed that they be allowed to undertake specified related activities without seeking its prior approval. Press reports describe these as businesses such as data analytics and technology services.
What SEBI has proposed?
At present, MIIs need SEBI’s permission for fund deployment and other activities, except treasury investments under a board approved policy. SEBI itself points out that a small investment in a technology platform supporting market operations faces the same approval as a large investment in an unrelated business. The new framework would open an automatic route for two kinds of activity.
Unlock the Full Story with ArthNow Premium
To continue reading this complete financial story and in-depth market context, upgrade to ArthNow Premium. Enjoy unlimited access across Web and Mobile.
Business Line
Read the full, original unfiltered story directly on the publisher's portal.