Latest news with #MIIs
Economic Times
25-06-2025
- Business
- Economic Times
Sebi proposes ED roles to bolster governance at market infrastructure firms
Public comments on the three proposals have been invited until July 15. Sebi indicated that amendments to SECC and D&P regulations, 2018, will be considered following stakeholder feedback. Sebi proposes governance overhaul for market infrastructure institutions, mandating the appointment of two executive directors to oversee critical operations and regulatory compliance. This move aims to bolster operational oversight and ensure MIIs prioritize public interest and systemic stability. The regulator also suggests strengthening the roles of other key managerial personnel and limiting external directorships for MDs and EDs. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads New Delhi, Sebi on Tuesday proposed an overhaul of the governance framework of market infrastructure institutions including stock exchanges by mandating the appointment of two executive directors (EDs) to bolster operational a consultation paper, Sebi said the move is aimed at ensuring MIIs (market infrastructure institutions) -- which have witnessed sharp growth in investor base, revenue, and market activity -- place public interest, compliance, and systemic stability above commercial two EDs, to be designated as KMPs (key managerial personnels), would head "critical operations" and "regulatory, compliance, risk management, and investor grievances", respectively, and be inducted into the MII's governing board alongside the Managing Director (MD), Sebi the MD holds overarching authority across all verticals, but Sebi noted that functions related to technology, risk management and investor protection need empowered leadership to prevent governance EDs are expected to match the MD in stature and will report to the board and Sebi on issues in their respective verticals, it regulator also recommended strengthening the roles of other KMPs, including Chief Technology Officer, Chief Information Security Officer, Chief Risk Officer, and Compliance Officer to ensure robust internal Sebi has proposed limiting the external directorships of MDs and EDs. The MD may serve as a non-executive director only on the board of a Section 8 company or an unlisted government entity not engaged in commercial the executive directors will be barred from directorships in any company except MII subsidiaries, as per the consultation regulator said these measures were necessary in light of the growing criticality and complexity of MIIs, as evidenced by rising demat accounts, increased trading volumes, and swelling also highlighted sharp increase in technology expenditure and dividend payouts, indicating both operational dependence on tech and significant commercial comments on the three proposals have been invited until July 15. Sebi indicated that amendments to SECC and D&P regulations, 2018, will be considered following stakeholder feedback.
Time of India
25-06-2025
- Business
- Time of India
Sebi proposes ED roles to bolster governance at market infrastructure firms
New Delhi, Sebi on Tuesday proposed an overhaul of the governance framework of market infrastructure institutions including stock exchanges by mandating the appointment of two executive directors (EDs) to bolster operational oversight. In a consultation paper, Sebi said the move is aimed at ensuring MIIs (market infrastructure institutions) -- which have witnessed sharp growth in investor base, revenue, and market activity -- place public interest, compliance, and systemic stability above commercial considerations. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Hashimoto-Leber: Der Erzfeind namens Thyroxin Mission Schilddruese Mehr erfahren The two EDs, to be designated as KMPs (key managerial personnels), would head "critical operations" and "regulatory, compliance, risk management, and investor grievances", respectively, and be inducted into the MII's governing board alongside the Managing Director (MD), Sebi said. Currently, the MD holds overarching authority across all verticals, but Sebi noted that functions related to technology, risk management and investor protection need empowered leadership to prevent governance failures. The EDs are expected to match the MD in stature and will report to the board and Sebi on issues in their respective verticals, it added. Live Events The regulator also recommended strengthening the roles of other KMPs, including Chief Technology Officer, Chief Information Security Officer, Chief Risk Officer, and Compliance Officer to ensure robust internal systems. Additionally, Sebi has proposed limiting the external directorships of MDs and EDs. The MD may serve as a non-executive director only on the board of a Section 8 company or an unlisted government entity not engaged in commercial activity. However, the executive directors will be barred from directorships in any company except MII subsidiaries, as per the consultation paper. The regulator said these measures were necessary in light of the growing criticality and complexity of MIIs, as evidenced by rising demat accounts, increased trading volumes, and swelling profits. Sebi also highlighted sharp increase in technology expenditure and dividend payouts, indicating both operational dependence on tech and significant commercial success. Public comments on the three proposals have been invited until July 15. Sebi indicated that amendments to SECC and D&P regulations, 2018, will be considered following stakeholder feedback.
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Business Standard
24-06-2025
- Business
- Business Standard
Sebi proposes ED roles, new norms to strengthen governance at MIIs
The Securities and Exchange Board of India (Sebi) on Tuesday proposed an overhaul of the governing board of market infrastructure institutions (MIIs) -- such as stock exchanges, clearing corporations, and depositories. The market regulator has proposed the appointment of two executive directors (EDs) on the governing board for critical operations, regulatory compliance, and investor grievances. It is also considering clear definitions on the roles and responsibilities of the MD, the proposed EDs, and other key managerial personnel (KMPs) like the chief technology officer (CTO). Currently, the governing board of an MII includes the managing director (MD), non-independent directors, and public interest directors (PIDs). The overhaul comes at a time when Sebi has been emphasising prioritisation of public interest over commercial interests and the role of MIIs as first-line regulators. 'To ensure adequate resource allocation to Verticals 1 and 2, and to ensure that these critical functions are not constrained by commercial considerations, capable and empowered KMPs of stature are needed to head these verticals,' said Sebi in a consultation paper floated on Tuesday. Sebi added that having these senior officials on the board will ensure timely communication of concerns to the regulator for corrective actions. While the MD will continue to oversee the overall functioning, the appointed EDs must be of comparable stature to the MD. Further, the appointment and re-appointment will be similar to that of the MD, requiring prior approval from Sebi. Sebi has recommended the ED meet the regulatory oversight and risk management committees quarterly without the presence of the MD. EDs will be required to report to Sebi and the governing board every three months. Apart from company subsidiaries, Sebi is also looking to tweak the norms on external directorships of MDs. MDs of MIIs may be permitted to be appointed as non-executive directors on the board of an unlisted state or central government company not involved in any commercial activity and non-profit firms registered under Section 8 of the Companies Act, 2013, according to the proposals. However, EDs will not serve on the board of any other company, other than the subsidiaries of the MII. The proposals come following a long trail of matters in which the governance at MIIs came into question.
Mint
24-06-2025
- Business
- Mint
Sebi proposes tougher governance norms for market institutions
The capital markets regulator has proposed new measures, including the appointment of board members for specific roles, to strengthen governance of stock exchanges, clearing corporations and depositories. The regulator seeks to reinforce the public-interest role of the market infrastructure institutions (MIIs) over their commercial objectives, according to a consultation paper released by the Securities and Exchange Board of India (Sebi) on Tuesday. 'MIIs have seen a rapid increase in investor base and volumes, as well as a growing network of intermediaries associated with them... a significant growth in revenue and profitability, and they enjoy high profit margins,' the regulator noted in its consultation paper. The proposals focus on three key areas: Sebi recommends the mandatory appointment of two executive directors (EDs) on the boards of MIIs to oversee critical functions such as trading, clearing, settlement, compliance, risk management and investor grievance redressal. These EDs would be designated as key management personnel (KMPs) and hold comparable stature to the managing director (MD). A third ED may be appointed at the institution's discretion for business development. The paper proposes codifying the roles and responsibilities of MDs, EDs and other key officers such as the chief technology officer (CTO) and chief information security officer (CISO). Currently, these responsibilities are either distributed across departments or not formally defined in the regulations. To reduce conflicts and improve accountability, Sebi has proposed restrictions on board roles. MDs of MIIs would only be allowed to serve as non-executive directors in charitable entities or unlisted government companies not engaged in commercial activities. EDs would be allowed to sit only on the boards of MII subsidiaries. This approach mirrors similar restrictions in the banking sector. 'With the surge in retail investors, the underlying concern is that MIIs must not operate without fixed accountability of KMPs. This consultation paper is a step in that direction,' said Diviay Chadha, Partner at Singhania & Co. 'MIIs—regardless of their status under the Companies Act—will be required to amend their charter documents and board composition to comply with the final regulations.' While the proposals aim to reduce potential conflicts of interest, some experts flagged possible unintended consequences. 'This prohibition on EDs of MIIs from serving on boards of any company, except MII subsidiaries, is necessary in principle to ensure accountability,' said Akshaya Bhansali, Partner at Mindspright Legal. 'However, from a broader market perspective, it may affect the availability of independent directors for listed companies.' These proposals come at a critical time as Sebi continues to review the National Stock Exchange's (NSE) long-delayed IPO application. NSE's public listing—first proposed in 2016—has faced several regulatory hurdles. In a letter to NSE dated 28 February, Sebi responded to the exchange's IPO application by stressing that 'the culture of giving primacy to public interest over commercial interest must run deep at the operating level as well.' Bhansali, however, said, 'These governance changes should not directly influence Sebi's review of the NSE IPO. They are not targeted solely at NSE. However, unless otherwise clarified, these norms could become de facto expectations or preconditions for approval.' Public comments on the consultation paper are open until 15 July.
Economic Times
26-05-2025
- Business
- Economic Times
Sebi comes out with appointment process of senior officials at MIIs
Markets regulator Sebi on Monday came out with a process to appoint specific key officials of stock exchanges and other market institutions. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Markets regulator Sebi on Monday came out with a process to appoint specific key officials of stock exchanges and other market institutions. These measures are aimed at ensuring that MIIs ( market infrastructure institutions ) are staffed with qualified, independent key management personnel (KMPs) and directors while safeguarding market integrity through effective cooling-off policies."To strengthen the governance framework of stock exchanges, clearing corporations and depositories (collectively referred to as MIIs), it is required that the KMPs of MIIs in the crucial areas of operations, such as compliance, risk management, technology and information security are of appropriate stature and independence," Sebi said in its Sebi came out with a process for the appointment, re-appointment, termination or resignation of Key Management Personnel like the Compliance Officer, Chief Risk Officer, Chief Technology Officer and Chief Information Security the appointment process, Sebi said an external agency will identify suitable Nomination and Remuneration Committee (NRC) will review and recommend to the Governing Board of MIIs. Further, the Governing Board will make the final regards to re-appointment, termination, or resignation, Sebi said NRC will evaluate and recommend action to the Governing Board and the final decision rests with the the regulator said that KMPs should be given a fair hearing before termination."While the Governing Board of the MII sets the overall tone, a culture of prioritising efficient discharge of responsibilities towards public interest falling under Verticals 1 and 2, over commercial interest under Vertical 3 must be ingrained at the operating level as well."Along with having a capable and efficient Managing Director (MD), there is a need for KMPs of appropriate stature and ability in Vertical 1 and 2 to ensure that the MII delivers its primary mandate as a public utility infrastructure institution and a first-line regulator," Sebi the cooling-off period for KMPs moving to competitor MIIs, Sebi said that Governing Boards will decide on cooling-off periods for KMPs (including MDs) before they can join a competing regulator said that cooling-off rules for Public Interest Directors (PIDs) and Non-Independent Directors have been updated through Gazette notifications (effective 90 days after April 30, 2025).Additionally, Sebi also reviewed the process for re-appointing Public Interest Directors on the governing board of MIIs."It has been decided that in case the existing PID after completion of his first term is not considered for re-appointment by the Governing Board of the MII, the rationale for the same shall be recorded and informed to Sebi," the regulator provisions will be applicable from the 90th day from this Monday, the regulator said.
