Framework of “Financial Disincentives for Surveillance Related Lapses” at Market Infrastructure Institutions

SEBI has issued Framework of “Financial Disincentives for Surveillance Related Lapses” at Market Infrastructure Institutions. MIIs shall disclose on their websites (and in their respective annual reports) the details pertaining to financial disincentive(s) if any, credited to the SEBI–IPEF under the framework for FDSRL at MIIs. Further, listed MIIs make appropriate disclosures required in terms of the Securities and Exchange Board of India(Listing Obligations and Disclosure Requirements) Regulations, 2015, regarding any financial disincentive(s)imposed by SEBI.

The framework of FDSRL at MIIs shall not be applicable to matters / instances wherein it has:

1. Made market wide impact.
2. Caused losses to a large number of investors.
3. Affected the integrity of the market, and any such matter shall be subject to appropriate proceedings under the SCRA/ SEBI Act, 1992/ Depositories Act, 1996.