The Securities and Exchange Board of India (SEBI) on Friday, September 12, introduced new governance norms for Market Infrastructure Institutions (MIIs), directing them to appoint two executive directors (EDs) on their governing boards.
MIIs — which include stock exchanges, clearing corporations, and depositories — form the backbone of India’s financial market ecosystem. Strengthening their governance is critical to ensuring the integrity, transparency, and smooth functioning of markets.
At its board meeting, SEBI clarified the roles and responsibilities of managing directors (MDs), executive directors (EDs), and other key managerial personnel (KMPs). The regulator also introduced restrictions on MDs and EDs holding directorships in other companies to avoid conflicts of interest and ensure focused oversight.
The new framework requires MIIs to prioritise regulatory compliance, risk management, critical operations, and investor grievance redressal over purely commercial interests.
With these measures, SEBI aims to strengthen accountability, streamline operational oversight, and create a more resilient market infrastructure. The move underscores the regulator’s effort to ensure that MIIs maintain robust governance structures and that top management functions are clearly defined.
