Mumbai, January 20, 2026, 11:39 IST
- SEBI has launched a review of LODR, the key listing and disclosure regulations governing India’s publicly traded companies
- Unlisted shares of MSEI have jumped following approval of a liquidity scheme and renewed optimism about a revival
- NSE, BSE, and other market infrastructure companies are hiring senior executives to comply with stricter governance rules
India’s market watchdog, the Securities and Exchange Board of India (SEBI), has kicked off a review of its Listing Obligations and Disclosure Requirements (LODR), sources told Business Standard late Sunday. This has put the Metropolitan Stock Exchange of India (MSEI) back under the spotlight, with its unlisted shares more than doubling recently amid chatter about a third exchange and a broader boost linked to the National Stock Exchange’s upcoming IPO. (Business Standard)
LODR serves as the primary guideline for disclosures and corporate governance among listed companies, detailing what information must be disclosed and when. Any overhaul could impact compliance efforts, adjust the timing for releasing price-sensitive data, and modify SEBI’s approach to enforcing governance violations.
The timing is crucial as SEBI pushes ahead with a broader overhaul of market regulations. Companies and intermediaries are closely watching to see if the regulator will cut down on overlaps or just shift them around.
The committee tasked with the LODR exercise convened for the first time in early January, the report noted. It positioned the move within a wider overhaul that’s already reshaped mutual fund and stock-broker regulations, while takeover rules and settlement norms remain on the agenda.
Market watchers say MSEI’s fresh bid comes after SEBI greenlit a liquidity enhancement scheme (LES). The plan uses incentives to push market makers and traders to post quotes, boosting cash-market volumes. Supported by brokers like Zerodha and Groww, MSEI aims to get approval to launch derivatives—contracts linked to stocks or indexes—once trading picks up. Meanwhile, major market infrastructure institutions (MIIs) such as NSE and BSE have ramped up senior hires to comply with a SEBI governance directive, according to Whalesbook. (Whalesbook)
SEBI chairman Tuhin Kanta Pandey described the LODR overhaul as a gradual process, not a quick fix. “We will have lots of consultation and put out a consultation paper and it will take some time,” he said at a CII event in November. (The Economic Times)
India’s equity market is largely controlled by NSE and BSE. If MSEI moves into derivatives, it will enter a fiercely competitive space where liquidity—characterized by tight bid-ask spreads and deep order books—often determines the winners and losers.
Regulatory approvals and executive hires don’t ensure trading volumes. MSEI’s unlisted shares have seen wild swings in the past. The exchange’s comeback depends on brokers and investors sticking around after incentives dry up—and on SEBI approving new products.
Listed companies, brokers, and investors are currently focused on the upcoming consultation paper, which will detail SEBI’s proposed changes to LODR and the timeline for their rollout. Until that document is released, the market is reacting more to the broad theme than the specifics.
