Sebi prescribes appointment process of senior executives at MIIs

ET BureauLast Updated: May 27, 2025, 06:12:00 AM IST

Synopsis

To bolster governance, Sebi mandated a structured process for appointing key management personnel (KMPs) at market infrastructure institutions (MIIs). Independent agencies will identify candidates for roles like compliance officer and CTO. The nomination and remuneration committee (NRC) will evaluate recommendations before the governing board makes the final decision, ensuring appropriate stature and independence.

Mumbai: The Securities and Exchange Board of India (Sebi) on Monday prescribed the process for appointment of key management personnel for market infrastructure institutions (MIIs) such as stock exchanges.

"To strengthen the governance framework for stock exchanges, clearing corporations and depositories, it is required that the key management personnel (KMPs) of MIIs in the crucial areas of operations such as compliance, risk management, technology and information security are of appropriate stature and independence," Sebi said in a circular.

The regulator said MIIs should engage an independent external agency to identify and recommend suitable candidates for appointment as compliance officer, chief regulatory officer and chief technology officer or by whatever designations called. The agency would have to submit its recommendations to the nomination and remuneration committee (NRC) of the MII.

The NRC will evaluate the recommendations of the agency and submit its recommendations for appointment of such KMPs to the governing board of the MII, which in turn would take the final decision.

...moreless

...moreless