Sebi proposes new governance rules for stock exchanges and market bodies
Regulator pushes for transparent hiring, independent audits, and stricter oversight across stock exchanges, depositories, and clearing corporations
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06:54 PM IST
Sebi regulations, Sebi news: In a bid to strengthen transparency and accountability across India’s financial market ecosystem, the Securities and Exchange Board of India (Sebi) has proposed a fresh set of governance norms for key Market Infrastructure Institutions (MIIs) including stock exchanges, depositories, and clearing corporations.
The proposed framework will apply to institutions such as NSE, BSE, CDSL, and clearing corporations, aiming to bring uniformity, transparency, and fairness in their operations.
Under the new proposal, senior-level appointments at these institutions will now require transparent procedures involving external agencies. Sebi has also recommended a mandatory cooling-off period for certain positions to prevent conflicts of interest.
One of the key changes includes making it mandatory for public interest directors (PIDs) to chair important board committees, enhancing independent oversight. Additionally, Sebi has suggested that all key committees must undergo an external evaluation every three years to ensure effectiveness and compliance.
The regulator has also proposed that MIIs submit a comprehensive report for FY 2024–25 by September 30, 2025, outlining their adherence to these governance norms. Furthermore, each MII will be required to conduct an independent internal audit annually.
The move is aimed at reinforcing transparency, accountability, and impartiality in institutions that form the backbone of India’s capital markets.
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