SEBI’s New Leadership Framework for Market Infrastructure Institutions
Why in the news
SEBI notified a framework reshaping leadership and reporting lines at Market Infrastructure Institutions (MIIs): stock exchanges, clearing corporations and depositories.
Key facts
- Posts: ED (Critical Operations) and ED (Regulation, Compliance and Risk), the latter also handling investor grievances.
- Public Interest Directors (PIDs) oversee both EDs’ yearly performance review.
- SEBI may grant temporary exemptions for genuine operational difficulty.
Objectives
- Improve independence and accountability.
- Tighten risk and technology governance.
- Reduce concentration of power in the MD’s office.
Appointment rules
| Requirement | Detail |
|---|---|
| Advertising | All editions of at least one national daily |
| Shortlist | At least two candidates per post sent to SEBI |
| Pay | Disclosed upfront; no change without board approval |
| Timing | Starts at least two months before the term ends |
Reporting
- The CTO, CISO, Compliance Officer and CRO report to the relevant ED, not the MD.
- The Standing Committee on Technology meets the ED (Critical Operations) quarterly, without the MD.
- Committees send independent assessments to the Nomination and Remuneration Committee.
Exam angle
- Number of EDs required: two.