Sebi Panel Suggests Steps To Strengthen Governance Of stock Exchanges

On Wednesday, a SEBI panel made recommendations for improving the functioning of the boards and committees that oversee stock exchanges and other market infrastructure institutions (MIIs). Additionally, it has evaluated the criteria for the appointment, function, and responsibility of board directors and key managerial persons (KMPs), according to a statement from Sebi.

The stock exchanges, depositories, clearing corporations, and committee led by former full-time Sebi member G Mahalingam proposed steps for developing efficient metrics for monitoring various elements of the operation of the MIIs and its KMPs.

Additionally, it evaluated the policy on the safekeeping and sharing of information held by MIIs, revisited the code of conduct and code of ethics for directors of the governing board, and provided recommendations on how to improve accountability and transparency.

Additionally, any activity that any MII investee company is engaged in that conflicts with its function as a first-line regulator should be phased out in a timely way.

The committee was established by the regulator in April 2022 with the purpose of reviewing the current governance framework and making suggestions for further strengthening governance standards at MIIs.

Last Thursday, the panel submitted provide its report to the regulator. The panel was established against the backdrop of governance failures found in some MIIs, rapidly shifting market dynamics and increased dependence on the technology of MIIs.

The Public Interest Directors (PIDs), chief regulatory officers, MII representatives, and other pertinent individuals were among the different stakeholders that the committee consulted. The previous committee reports on the governance of MIIs were also taken into account.

SEBI Securities and Exchange Board of India has extended the deadline for public comments on the plans to November 30.