Securities and Exchange Board of India (SEBI) Chairman Tuhin Kanta Pandey on Wednesday, 30 September 2026, categorically dismissed speculation that the market regulator was considering a proposal to allow stock exchanges such as the BSE and NSE to trade in their own shares. Speaking at the sidelines of the Association of Portfolio Managers in India (APMI) annual conference in Mumbai, Pandey said no such proposal was under consideration at present.

What the SEBI Chairman Said

Pandey's remarks were a direct response to reports suggesting SEBI was exploring the possibility of setting up a panel to examine whether stock exchanges could eventually be permitted to trade in their own shares. He was unambiguous in his denial. 'There is no such thing going on. It will be, if it happens or when it happens, you will come to know. So, there is no such thing at the moment,' he said.

The clarification puts to rest, at least for now, a debate that had gained traction in market circles — given that allowing exchanges to trade their own scrips would raise significant questions around conflict of interest, regulatory oversight, and market integrity.

Bond Indices and Derivatives: SEBI-RBI Talks Ongoing

On the development of bond indices and derivatives, Pandey said SEBI is actively working with the Reserve Bank of India (RBI) to finalise draft guidelines. He noted that draft norms have already been prepared and stakeholder comments have been sought, with discussions between the two regulators continuing to move the framework forward. He declined, however, to offer a timeline for when the final framework would be in place.

This collaboration signals a broader push to deepen India's fixed-income market infrastructure — a space that has historically lagged equity markets in terms of retail participation and derivative sophistication.

Easing Access for Foreign Portfolio Investors

Pandey also outlined a series of steps SEBI and the RBI are taking jointly to make India a more attractive destination for foreign portfolio investors (FPIs). These include streamlining registration and onboarding procedures, revamping the NSDL portal, and launching the India Market Access portal, which features a common application system allowing investors to track their application status in real time.

SEBI is also promoting digital onboarding, including the use of digital signatures, and simplifying know-your-customer (KYC) requirements. The regulator's intent, according to Pandey, is to reduce friction for foreign capital entering Indian markets — a priority that aligns with the government's broader ambition to position India as a global investment hub.

Continuous Listing Compliance in Focus

Pandey stressed the importance of robust continuous listing compliance, urging stock exchanges to actively monitor whether listed companies are adhering to regulatory norms. He said investor confidence depends on assurance that listed entities are genuine, compliant companies — and that the onus of that assurance rests with the exchanges themselves.

This emphasis on compliance monitoring comes amid a period of heightened regulatory scrutiny across several listed entities, and signals that SEBI intends to hold exchanges more accountable as frontline regulators. Further regulatory communications on both bond derivatives and FPI onboarding are expected in the months ahead.