SEBI Two Executive Directors Rule for Market Infrastructure Institutions
Why in the news
SEBI strengthened oversight and risk management at MIIs by creating two senior executive posts.
Key facts
- MIIs are systemically important: stock exchanges, clearing corporations, depositories.
- ED (Critical Operations) handles core operations; ED (Regulatory, Compliance and Risk) handles compliance, risk and investor grievances.
- Both report to the Managing Director.
- Compensation is disclosed upfront; changes need prior board approval; recruitment starts well before a term ends.
Oversight
- Public Interest Directors oversee yearly evaluations.
- EDs can escalate to SEBI.
- CTO, CISO, Compliance Officer and Chief Risk Officer report to their EDs rather than the MD.
- Statutory committees meet key personnel at least quarterly.
Exam angle
- Regulator: SEBI.
- Number of EDs: two.