The Securities and Exchange Board of India vide its notification dated 3rd March 2021 has issued Code of Conduct and Institutional Mechanism for prevention of fraud or market abuse to Stock Exchanges, Clearing Corporations and Depositories (herein after collectively referred as ‘MIIs’)
The market infrastructure institutions shall formulate a Code of Conduct to regulate, monitor and report trading by their designated persons and immediate relatives of designated persons towards achieving compliance with the PIT Regulations, by adopting the minimum standards set out in Schedule C to the PIT Regulations
MD / CEO of the MII shall put in place adequate and effective system of internal controls to ensure compliance with the regulations and circulars issued by the Board from time to time, to prevent fraud or market abuse by MII or its designated persons and immediate relatives of designated persons.
The Regulatory Oversight Committee of the MII shall review compliance with the provisions of this Circular at least once in a financial year and shall also verify that the systems for internal control are adequate and are operating effectively.
Further the market infrastructure institutions are directed to take necessary steps to put in place systems for implementation of the circular, including necessary amendments to the relevant bye-laws, rules and regulations for the implementation of the above and disseminate the same on their website and communicate to SEBI the status of implementation of the provisions of this circular through their Monthly Development Report.
