SEBI Proposes Board Relaxations and Strict Norms for MII Officials
· Business · Indian Express, Economic Times
The Securities and Exchange Board of India has proposed amendments to the governance framework governing market infrastructure institutions, including stock exchanges, clearing corporations, and depositories. Published in a consultation paper in Mumbai on Wednesday, the proposals aim to widen the pool of eligible directors by easing restrictions on firms with well-diversified shareholdings. SEBI also introduced a standard operating procedure establishing mandatory qualifications, experience, and certifications for four key managerial positions: Chief Technology Officer, Chief Information Security Officer, Compliance Officer, and Chief Risk Officer. Under the proposed definition of well-diversified shareholding, no individual shareholder or concert party aside from public-sector entities can own 10% or more of the company. The existing carve-out for public financial institution directors will now extend to companies with well-diversified ownership whose associates act as trading members
Why it matters
The proposed regulatory changes impact the governance structure of Indian stock exchanges and tighten operational compliance requirements for key risk and technology personnel.
Read the original report — Indian Express
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