SEBI Mandates Two Executive Directors For Market Infrastructure Institutions

SEBI issued new rules to enhance the governance framework at Market Infrastructure Institutions (MIIs), including stock exchanges, by requiring the appointment of two Executive Directors (EDs).

The ED of Vertical 1 will manage critical operations, while the ED of Vertical 2 will handle regulatory functions, compliance, risk management, and investor grievances. Both EDs will join the MII’s Governing Board. Applications for the positions must be invited through open advertisement, and MIIs must submit at least two candidate names for SEBI approval, along with compensation details. EDs will report to the MD and present quarterly updates to the Board. Performance assessments will be conducted by committees including Standing Committee on Technology (SCOT), Regulatory Oversight Committee (ROC), Risk Management Committee, and the Nomination and Remuneration Committee. Phased implementation allows the first ED within six months and the second within nine months.