Sebi on Friday put in place a three-stage framework for addressing any conflict arising out of listing of a stock exchange on another bourse, with an independent conflict resolution committee to be set up by the markets regulator having the final oversight role. The move comes ahead of the listing of BSE on the National Stock Exchange (NSE) platform. Besides, NSE has also initiated its IPO process and filed draft papers with Sebi last month for Rs 10,000 crore IPO. The Listing Department of stock exchange, on which the listing is done, will be responsible for monitoring the compliance of the listed bourse, Securities and Exchange Board of India (Sebi) said in a circular. The Independent Oversight Committee of the listing stock exchange would exercise oversight at the second level to deal with the conflicts, if any.
The listed stock exchange can appeal to the Independent Oversight Committee of the listing stock exchange, if aggrieved, with the decision on disclosure of the listing stock exchange. An independent Conflict Resolution Committee (CRC) constituted by Sebi, with an objective for independent oversight and review, will monitor potential conflicts between listed and listing stock exchange on a regular basis. The listed stock exchange aggrieved by the decision of the Independent Oversight Committee of the listing exchange may appeal to the CRC. BSE's Rs 1,243 crore initial public offer got oversubscribed 51 times last week. The first share sale by a domestic stock exchange saw bids worth over Rs 44,000 crore.