He was responding to a query about the demand of regional exchanges to extend them exclusivity in listing of companies with capital base of less than Rs 25 crore.
The regional stock exchanges have lost their relevance due to drying up of trading volumes and the large-scale delisting of companies after listing on regional bourses was made optional.
The regional bourses have been demanding that small market capitalisation companies may be allowed to list only at regional stock exchanges. Thus, any investor interested in trading in such securities would be forced to trade on these exchanges. Besides, these exchanges would also remain relevant and at least keep getting the listing fees from these companies.
According to Mr GN Bajpai, chairman of Securities and Exchange Board of India (Sebi), Exclusivity in listing of small-cap companies at regional bourses may not be a viable option. While we are open to suggestions and ideas, any exclusivity in listing may affect the liquidity and thus would adversely affect the price discovery mechanism.
Mr Bajpai added that the recent developments in the equity markets have made it a highly integrated place and thus limiting the trading within a specific region may not be advisable.