SEBI sets a Committee to improve Exchanges and other major Market Organisations

On Monday, market regulator Securities and Exchange Board of India (SEBI) constituted an ad-hoc expert panel to improve the governance standards of market infrastructure institutions (MIIs).

On Monday, Securities and Exchange Board of India (SEBI) the market regulator, set up an ad-hoc committee of experts on Monday to improve the governance of market infrastructure institutions (MIIs), which include stock and commodity exchanges, clearing organisations, depositories, and other KYC agencies. The move by SEBI to form the committee comes in the wake of the NSE co-location fraud.

G. Mahalingam, former whole-time member, SEBI; JN Gupta, Managing Director of proxy firm SES; Aarti Nihalani, Partner, Oliver Wyman; Sandip Bhagat, Partner, S&R Associates; and Uttam Bagri, former Chairman, BSE Brokers Forum are among the members of the committee.

The committee’s mandate includes making recommendations on measures to strengthen the role of MIIs’ governing board and committees; reviewing the requirements for the appointment, role, and responsibility of directors on the board and key managerial personnel; developing effective metrics for monitoring various aspects of MIIs and KMPs’ operations; and enhancing accountability, transparency, and reviewing the safekeeping policy.

According to a news statement published by SEBI, the panel will also “create effective metrics for monitoring different aspects of the operation of MIIs and KMPs”, “enhance accountability and transparency,” and “examine the policy on safeguarding and sharing of information held by MIIs.”

Revisiting the “code of conduct and code of ethics” for governing board directors and KMPs is another assignment that will be handed to the committee.

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