SEBI mandates 2 executive directors on boards of Market Infrastructure Institutions

The Securities and Exchange Board of India (SEBI) has issued governance norms for Market Infrastructure Institutions (MIIs), mandating the appointment of two executive directors (EDs) on their governing boards.MIIs, which include stock exchanges, clearing corporations, depositories, and other entities that form the backbone of India’s market infrastructure, are central to maintaining the integrity and smooth functioning of financial markets.

The markets regulator at its board meeting on Friday, September 12, clarified the roles and responsibilities of managing directors (MDs), EDs, and specific key managerial personnel (KMPs).

SEBI laid down norms for directorships of MDs and EDs in other companies to ensure focused oversight and prevent conflicts of interest.Also Read: SEBI lowers entry barrier for privately placed InvITs: What investors should know

Under the new guidelines, MIIs are required to prioritise critical operations, regulatory compliance, risk management, and investor grievance redressal over commercial interests.

The move is aimed at strengthening accountability and operational oversight within MIIs. SEBI’s guidelines seek to ensure that MIIs maintain robust governance structures and that top management roles are clearly defined to safeguard regulatory and operational standards.

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