Home / Business and Economy / Sebi Eyes MII Governance Overhaul
Sebi Eyes MII Governance Overhaul
9 Sep
Summary
- Sebi proposes governance reforms for market infrastructure institutions.
- Director eligibility rules may be relaxed for MIIs.
- Standardised requirements for four key management roles are proposed.
The Securities and Exchange Board of India (Sebi) has put forth proposals to enhance the governance of market infrastructure institutions (MIIs). A key aspect involves reviewing director appointment criteria, potentially easing restrictions that currently make it difficult for MIIs to secure qualified board members, particularly Public Interest Directors.
Sebi's consultation paper suggests extending existing carve-outs for directors of public financial institutions and public-sector banks. This would apply to companies with diversified shareholding where associates are trading members, clearing members, or depository participants, addressing concerns that current rules are overly restrictive.
Furthermore, Sebi is establishing a Standard Operating Procedure (SOP) for crucial management positions. This SOP will define qualifications, experience, skill sets, and certification for Chief Technology Officers, Chief Information Security Officers, Compliance Officers, and Chief Risk Officers to ensure robust technological resilience and risk management.
These proposed changes aim to attract a wider pool of talent and expertise into MIIs, strengthening their operational integrity. Sebi has also sought feedback on the potential appointment of deputies for these key roles to ensure business continuity.
