SEBI Forms a Committee to Strengthen the Governance of Market Infrastructure Institutions

Capital markets regulator Sebi on Monday set up a committee to review and make recommendations to further strengthen governance standards at the exchange and other market infrastructure institutions (MIIs).

This development comes on the back of alleged loopholes in corporate governance at NSE, with several issues coming to the fore after the Sebi order exposing the existence of a ‘Himalayan yogi’ that affected the decisions of former Managing Director and CEO Chitra Ramkrishna.

Apart from this, Ramkrishna shared some inside confidential information including NSE’s financial and business plans, dividend scenario, financial results with yogi and even consulted him on performance evaluations of stock exchange employees.

The six-member panel will be chaired by J Mahalingam, a former full-time member of SIBI, according to a statement.

The other members of the committee are – the managing director and CEOs of the NSE and BSE stock exchanges, and the warehouses – NSDL and CDSL; c. En Gupta, MD in Stakeholder Empowerment Services; Aarti Nihalani, Partner, Oliver Wyman; Sandeep Bhagat, Partner, S&R Associates; and Uttam Bageri, former chair of the BSE Brokers Forum.

The committee’s terms of reference include making recommendations on measures to enhance the role of the board of directors and committees in health insurance institutions.

In addition, the Committee will review requirements relating to the appointment, role and responsibility of Directors on the Board and Key Management Persons (KMPs), and develop effective metrics for monitoring various aspects of the work of MIIs and KMPs.

Also, the committee will work to enhance accountability and transparency, review the policy for safe keeping and sharing of information held by health insurance organizations and review the Code of Conduct and Code of Ethics for Board Directors and KMPs.

(The title and image for this report may have been reformulated only by the Business Standard staff; the rest of the content is automatically generated from a shared feed.)

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