A market for exchanges

The Securities and Exchange Board of India's decision to allow stock exchanges to list, contrary to the Bimal Jalan Committee's recommendations, is a welcome step. By providing an exit route to incumbent shareholders, it would enable exchanges to raise funds for investing in technology upgradation and investor education, thereby contributing to the development of the country's equity markets. SEBI has, however, taken note of the potential for a conflict of interest between regulatory and commercial roles of exchanges, as raised by the Jalan Committee's report on the subject. 

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