SEBI Proposes Overhaul of Market Infrastructure Governance

The Securities Exchange Board of India (SEBI) has unveiled a consultation paper proposing major changes to the governance of Market Infrastructure Institutions (MIIs) such as Stock Exchanges, Clearing Corporations, and Depositories.

The proposed framework suggests appointing two executive directors dedicated to critical operations and regulatory functions. SEBI underscores the increased growth in the securities market, necessitating enhanced governance measures for MIIs.

Key suggestions include mandating public interest directors as chairs of significant committees and triennial external assessments of key committees. Furthermore, the paper aims to redefine the roles of MD, EDs, and key management personnel to ensure MIIs prioritize public interests and compliance over commercial objectives.

(With inputs from agencies.)