Sebi Enhances Governance of Market Institutions with New Leadership Guidelines

The Securities and Exchange Board of India (Sebi) has unveiled new guidelines to appoint key officials within stock exchanges and other market infrastructure institutions. The measures aim to ensure that these vital organizations are staffed with independent and qualified management personnel, crucial for maintaining market integrity.

Sebi's directives mandate that key management personnel involved in compliance, risk management, technology, and information security are of high stature and independence. An external agency will identify suitable candidates, whose appointment will be reviewed by the Nomination and Remuneration Committee (NRC) before the final decision by the Governing Board.

Regulations also include procedures on the cooling-off period for key personnel before they can join competing institutions, besides rules for re-appointing Public Interest Directors. These initiatives, set to be effective 90 days from the announcement, highlight Sebi's commitment to enhancing governance frameworks in market institutions.

(With inputs from agencies.)