Image Source : The Hindu
The Securities and Exchange Board of India (SEBI) has directed that executive directors overseeing critical functions—including operations, regulation, compliance, and risk management—must now be part of the governing boards of Market Infrastructure Institutions (MIIs). The move aims to enhance accountability, strengthen oversight, and align governance standards across exchanges and depositories.
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In a significant step toward reinforcing governance standards, SEBI has mandated that key executive directors managing vital functions such as regulatory compliance, risk management, and core operations must serve as members of the governing boards of Market Infrastructure Institutions (MIIs) — which include stock exchanges, clearing corporations, and depositories.
Key Highlights
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Board Inclusion Mandate: Top-level executives heading critical verticals will now have direct representation on MII governing boards.
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Enhanced Governance: This ensures that operational insights and risk-based perspectives are integrated into high-level decision-making.
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Unified Oversight: Aims to bring structural parity and strengthen institutional accountability across all MIIs.
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Risk Management Emphasis: SEBI reiterates the need for proactive compliance culture at the top management level.
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Regulatory Alignment: The directive is part of ongoing reforms to fortify market infrastructure resilience and investor protection frameworks.
Source: Official circular issued by the Securities and Exchange Board of India (SEBI), reported via BSE filing and Exchange Regulatory Updates.
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