Sebi Sets Up Panel On NSE IPO

Mumbai: Sebi chairman Tuhin Kanta Pandey on Thursday said the markets regulator will not let commercial interest trump general public interest, while deciding on the largest equity bourse NSE’s Initial Public Offering (IPO) plans.

“We will not allow commercial interest to take over the general public interest, and it is for the regulator to ensure that,” Pandey told reporters on the sidelines of the CII corporate governance summit. Pandey explained that India has adopted a model where commercial or for-profit entities have become exchanges and made it clear that it is the regulator’s job to ensure that the interest of the general public is not compromised.

It is also the regulator’s job to resolve any friction between exchanges. When asked for a timeline by when the regulator wants the issues to be resolved, he said that it will be done at the earliest. It can be noted that NSE’s IPO plans have been stuck for over eight years now. The equity bourse had earlier this year sought the regulator’s no objection to proceed ahead with the plans. Sebi has constituted an internal committee to look into NSE’s IPO, and the markets regulator has asked NSE to resolve all the issues.

As per reports, Sebi’s concerns include the compensation given to key management personnel and the majority ownership in Clearing Corporation, among others.