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Informist, Wednesday, Sept. 9, 2026

 

--SEBI mulls reviewing criteria of naming director at mkt infra institutions 

--SEBI proposes SOP for appointing key managers by mkt infra institutions 

 

MUMBAI – The Securities and Exchange Board of India has proposed to allow directors from companies that have associate companies as trading members, clearing members, and depository participants to be directors on the board of market infrastructure institutions. However, this will apply only to directors of companies with diversified shareholding, according to a consultation paper issued by the regulator.

 

SEBI said diversified shareholding for deciding eligibility of the company means "no shareholder other than the shareholders which are in public sector, either individually or together with persons acting in concert, directly or indirectly own more than or equal to 10% stake or hold control or hold shares carrying more than or equal to 10% of the voting rights of such company". Effectively, only directors of companies where no shareholder has more than 10% stake are eligible to be appointed as directors on a market infrastructure institution's board. Public-sector shareholders are exempted from this condition.

 

SEBI has proposed to make changes to the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012, and the Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018, to facilitate the change in rules. Public comments on the consultation paper have to be submitted to SEBI by Sept. 30.

 

Further, SEBI has proposed that the boards of market infrastructure institutions approve a standard operating procedure to appoint key managerial personnel such as chief technology officer, chief information security officer, compliance officer, and chief risk officer. The SOP should include directions related to qualification, experience, skill-set, and certification required to be appointed to key managerial positions in market infrastructure institutions.

 

SEBI also proposed that a vacancy on the board of a market infrastructure institution should be filled within three months. The regulator has also proposed to appoint deputies of people holding key managerial positions to ensure continuity.  End

 

Reported by Anshul Choudhary

Edited by Rajeev Pai

 

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