India should allow exchanges to list on own platform, NSE chairman says

According to Business Recorder, NSE Chairman Srinivas Injeti urged India's markets regulator to rethink its position on exchanges being listed on their own platforms. He made the remark on Friday, a day after the exchange operator's shares began trading on rival BSE at a valuation near $47 billion. The regulator debated self-listing in 2015 but rejected it over potential conflicts of interest, requiring exchange shares to trade on other bourses instead.

Several major global markets already allow self-listing, with the United States as an example, since Intercontinental Exchange, the parent of the NYSE, trades its shares on the exchange it runs. In India, NSE accounts for about 93% of cash-market trading and close to 75% of options, but options activity has dropped after tighter rules meant to bring Indian markets in line with global norms. Ashish Chauhan, NSE's chief executive, told Reuters on Friday that earlier declines came from regulatory changes and teething problems with the closing auction session.

Meanwhile, the Securities and Exchange Board of India has made speculative options dealing more expensive while pushing cash market activity forward. Chauhan added that NSE would help build the cash segment if the government set that goal out through regulation. On Thursday, India opened physically settled non-agricultural commodity derivatives to FPIs, and Krishnan said letting them trade bullion contracts would help NSE expand its commodities business.