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Why won't NSE & BSE eat their own dog food - aka become listed entities themselves?

The Firm show on CNBC-TV18 has a report enquiring into why the leading Indian stock exchanges - BSE and NSE - haven't gone public themselves - especially after raising Private Equity capital with a clear understanding that such investors would seek profitable exits within a few years. With no revert from SEBI on clearances for the exchange IPOs, the PE investors in these exchanges have written to the Finance Minister and speak openly about their frustration.

View the report video here and text version here.

Extracts:
Sohil Chand, MD, NVP India:
“I think what is important is to see what has happened to the multiple and the Rs 3,950 represents a multiple of only 14 times trailing earnings. When we look at comparable stock exchanges, the listed stock exchanges whether it is Hong Kong or Singapore or other comparable markets, they traded 30 times forward earnings. So, in our estimate the NSE right now, the private markets are undervaluing it by 50 percent.”
...“The listed stock exchange model is one that is well established throughout the world. Every major developed country in the world whether it is the US, UK or Japan, China, Hong Kong, Singapore, Germany they all have listed stock exchanges. The country’s which don’t have listed stock exchanges are countries like Saudi Arabia, Argentina. I think we need to decide which category we want India to be viewed in.”  
 Rahul Mehta, Director, Argonaut Private Equity:
“We are long-term investors, at the same time we are not necessarily running a charity. So, we invest under very strict procedures, under procedures where we know when our money is going to coming back to us and what kind of expected returns we have. We can certainly live with regular business risk and that is something we live with everyday but what we cannot understand is risk that comes out of regulations changing.”   
...Chitra Ramkrishna, MD & CEO, NSE
“For any company that lists on NSE, I offer a value proposition of liquidity, index, derivatives, etc. I genuinely believe that this is tremendous benefit that I can offer the securities that are listed on NSE. It is only natural that my shareholders want to see the same benefit for the NSE shares.”
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