SEBI Guidelines to Stock Exchanges, Clearing Corporations and Depositories Based on the recommendations of the Committee on Strengthening of Governance of Market Infrastructure Institutions

SEBI has issued Guidelines to Stock Exchanges, Clearing Corporations and Depositories Based on the recommendations of the Committee on Strengthening of Governance of Market Infrastructure Institutions(MIIs). As per the guidelines, Public Interest Directors (PIDs) of the MII shall meet separately, at least once in every six months, to exchange views on critical issues concerning the MII.

All PIDs shall mandatorily attend such meetings.

The objectives of such meetings shall, inter alia, include the following:

1. To review the status of compliance with all applicable regulations, circulars, guidelines, letters issued by SEBI from time to time;
2. To review the functioning of Vertical-1 i.e. “Critical Operations” and Vertical-2 i.e. “Regulatory, Compliance, Risk Management and Investor Grievances”;
3. To review the adequacy of resources (both financial and human) for functions under Verticals
4. To identify important issues which may involve conflict of interest for the MII or may have significant impact on the functioning of the MII or may not bein the interest of securities market; and
5. To review the corrective steps taken by the MII on observations of SEBI inspections particularly on issues of governance standards, technology, cyber security, system audit and cyber security audit observations.