Sebi on Tuesday proposed an overhaul of the governance framework of market infrastructure institutions including stock exchanges by mandating the appointment of two executive directors (EDs) to bolster operational oversight.
In a consultation paper, Sebi said the move is aimed at ensuring MIIs (market infrastructure institutions) -- which have witnessed sharp growth in investor base, revenue, and market activity -- place public interest, compliance, and systemic stability above commercial considerations.
The two EDs, to be designated as KMPs (key managerial personnels), would head "critical operations" and "regulatory, compliance, risk management, and investor grievances", respectively, and be inducted into the MII's governing board alongside the Managing Director (MD), Sebi said.
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