India’s capital market regulator, the Securities and Exchange Board of India (Sebi) has announced its decision to allow domestic stock exchanges and depositories to get listed if they meet certain conditions.

The move is mean more less the opposite of the recommendations of the Bimal Jalan Committee on the matter. The regulator indicated that the listing will be only be allowed for those stock exchanges, who will be able to manage the conflict of interest between business expansion and their role as a frontline regulator.

They will be able to get listed after regulatory and business functions are differentiated so as to avoid major conflict of interest. However, the regulator has not allowed self-listing of shares by Exchanges in the country.

The board of SEBI approved the new rules under which the Exchanges in the country will only be able to get listed three years after they receive an approval for listing from the regulator. The regulator also ordered the setting up of independent clearing corporations and made it mandatory for the exchanges to transfer 25% of the profits to a Settlement Guarantee Fund of the clearing house.

The stock exchanges will have to own at least 51% of the holding in clearing corporations as per the new regulations.