IND SEBI Market Infrastructure Firms

On Jun. 25, IND SEBI issued circular on ensuring effective oversight.

  • IND SEBI wrote to all recognized stock exchanges, all recognized clearing corporations and all depositories (collectively, market infrastructure institutions or MIIs), regarding guidelines on functions as well as composition of various statutory committees of MIIs.
  • Follows IND SEBI Feb. 2021 issued new master circular for depositories, see #97698.
  • Also follows IND SEBI Oct. 2023 issued master circular for stock exchanges, #188261.
  • Overview of Circular
  • This circular reminds that MIIs shall have prescribed statutory committees, namely functional committees, oversight committees, as well as an investment committee.
  • Taking into account recommendations of Industry Standards Forum (ISF) of MIIs and subsequent deliberations, revised Terms of reference (TOR) of statutory committees is set out at annexure-A; revised TOR provides for composition of statutory committees.
  • Specifically, member committee; nomination and remuneration committee; standing committee on technology; reg oversight committee; risk management committee; and investment committee; TOR also includes particulars on compliance-related aspects.
  • In addition, requirements re public interest directors (PIDs) in statutory committees at MIIs; independent external professionals (IEPs) at statutory committees at MIIs.
  • It rescinds certain provisions of IND SEBI circulars of Oct. 6, 2023 and Oct. 16, 2023.
  • IND SEBI also advised MIIs to take necessary steps to put in place systems for implementation of the above; make necessary amendments to the relevant bye-laws, rules as well as regulations, wherever required, for the implementation of the above.
  • Advised MIIs to bring the provisions of this circular (of Jun. 25) to the notice of market participants (including investors) and also to disseminate the same on their website.
  • Effectiveness
  • This circular comes into effect on Jul. 25, 2024, being the 30th day after its issuance.

Regulators IND SEBI
Entity Types B/D; Depo; Exch
Reference Cir SEBI/HO/MRD/MRD-PoD-3/2024/088, 6/25/2024; ESG
Functions Compliance; C-Suite; Legal; Risk
Countries India
Products Clearing; Custody; Equity; Securities
Regions AP
Rule Type Final
Rule Date 6/25/2024
Effective Date 7/25/2024
Rule Id 217082
Linked to Rule :97698
Reg. Last Update 6/25/2024
Report Section International

Last substantive update on 06/28/2024