Sebi Extends Deadline for Public Input on Clearing Corporations' Ownership Diversification

The Securities and Exchange Board of India (Sebi) has extended the timeline to December 31 for public comments on its proposal to diversify the ownership of clearing corporations, which are currently fully owned by stock exchanges. The regulator seeks public input to ensure a fair transition with minimal disruption.

The Securities and Exchange Board of India (Sebi) announced an extension for public comments on diversifying clearing corporations' ownership until December 31, 2024. These corporations are currently wholly-owned subsidiaries of stock exchanges.

Sebi's consultation paper on November 22 sparked discussions about ownership reforms, initially seeking feedback by December 13. Responding to stakeholder requests, Sebi granted additional time for input.

The proposed shift aims to balance stakeholder interests and minimize market disruptions. Options include a phased distribution of shares and restrictions on listing to ensure compliance with SECC norms.

(With inputs from agencies.)