SEBI Cooling-Off Rule for MII Directors Moving to Rivals
Why in the news
In May 2025, SEBI made a cooling-off period compulsory for directors moving between competing market infrastructure institutions.
Key facts
- Covered: non-independent directors and public interest directors.
- MIIs: stock exchanges, clearing corporations and depositories.
- Trigger: only a move to a competing institution.
Norms
| Director type | Requirement |
|---|---|
| Non-independent | Cooling-off period first |
| Public interest | 3-year term at a rival, after SEBI’s prior approval |
Purpose
- Avoid conflicts of interest and undue influence.
- Keep competing institutions separate and impartial.
Exam angle
- Rule covers exchanges, clearing corporations, depositories.