Sebi Introduces Guidelines for Evaluating Market Infrastructure

Sebi has introduced guidelines for evaluating the performance of statutory committees within market infrastructure institutions. MIIs must appoint an independent agency to conduct these evaluations every three years, with the first report due by September 2025. The aim is to enhance transparency and accountability in MIIs.

In a move to standardize evaluations, Sebi unveiled guidelines for assessing the performance of statutory committees in market infrastructure institutions (MIIs). These include stock exchanges, clearing corporations, and depositories.

The rules mandate MIIs to appoint an independent external agency for evaluations every three years, with the first assessment report expected by September 30, 2025. Evaluations will consider the roles and responsibilities of committees, meeting effectiveness, and governance quality.

Sebi emphasized transparency and accountability, urging MIIs to perform annual internal evaluations. Furthermore, Sebi requires MIIs to seek its approval before appointing evaluation agencies with relevant securities market experience and no conflicts of interest.