The SEBI headquarters in Mumbai, India (Photographer: Adeel Halim/Bloomberg)

SEBI Not Opposed To Stock Exchange Mergers

India needs more stock exchanges but that doesn’t mean bourses can’t merge, according to the regulator.

“More players are required, but if economics determines there should be consolidation, then so be it,” said Ajay Tyagi, chairman of Securities and Exchange Board of India, on the sidelines of an event organised by industry body Assocham in Mumbai.

Tyagi said SEBI is yet to receive any proposal from exchanges on consolidation. Business Standard and the Economic Times newspapers reported quoting unnamed people that the National Stock Exchange and MCX Ltd. are in talks for a proposed merger.

The merger reports come after SEBI allowed universal exchanges that offer trading in both stocks and commodities from Oct. 1.

Also read: SEBI Nod To Unified Exchanges, New Framework For Rating Agencies And Mutual Funds

MCX, in its response to exchanges, said the “company continuously evaluates various opportunities for enhancing shareholders’ value”. NSE declined to comment.

Second Show-Cause To NSE

Tyagi also confirmed that the regulator has service a second show-cause notice to the NSE in its probe into the alleged preferential access given to some high-frequency traders. “We are yet to hear from them,” he said.

The probe has delayed the initial public offering of the exchange, and the regulator has returned its settlement plea.