Market regulator Securities and Exchange Board of India (SEBI) is planning to bring transactions such as tender offers, share buybacks and offers for sale (OFS) under the interoperability framework for clearing corporations by the end of November this year. The move is expected to reduce brokers’ compliance costs, improve capital efficiency and simplify clearing arrangements across stock exchanges.
While most exchange-traded products are already covered under the interoperability framework, certain transactions remain outside its scope. As a result, brokers have to maintain separate clearing arrangements with the clearing corporations of the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) to handle these transactions, adding to their operational costs and compliance burden.
The Brokers’ Industry Standards Forum (ISF) had flagged the issue with the market regulator, highlighting that transactions such as tender offers, buybacks and OFS continue to require parallel clearing arrangements despite the existing interoperability framework.
Addressing the issue recently at a programme organised by the BSE Brokers Forum (BBF), SEBI Chairperson Tuhin Kanta Pandey said the regulator was working towards expanding the framework, with implementation targeted by the end of November 2026.
“We are addressing the same, with implementation targeted by end-November 2026. This will improve capital efficiency and lower compliance costs, while preserving settlement safety,” Pandey said.