SEBI proposal could let exchanges expand data and tech businesses
In short
SEBI has proposed changes that could let exchanges and depositories expand into data and technology businesses. The report says these firms may also be able to use subsidiary earnings more freely, but with stricter board checks and conflict rules.
This could open new income sources for market infrastructure companies. The report does not say when the proposal will be decided or which firms will be affected first.
What the reporting says
SEBI’s proposal could give exchanges and depositories more flexibility to expand related businesses and use subsidiary earnings, subject to tighter board oversight and conflict safeguards. BusinessLine’s summary says market infrastructure institutions may gain room to grow into data and technology lines. The immediate consequence is a possible regulatory opening for new revenue streams, but the reporting does not say when SEBI will decide or which firms would benefit first.
Why it matters
SEBI’s proposal could allow exchanges and depositories to expand into related data and technology businesses and deploy subsidiary earnings with tighter board oversight and conflict safeguards. The reporting suggests more flexibility for market infrastructure institutions, but it does not name specific beneficiaries or give a decision timeline. The main effect is a possible regulatory shift, not a final rule.