The committee and Exchange constituted by the Securities Board of India (Sebi) to review the governance framework for market infrastructure institutions (MIIS) - such as exchanges recently released its draft report for public comments.
MIIS are unique institutions providing vital infrastructure for trading, settlement and recordkeeping. They are vested with regulatory responsibilities while also pursuing commercial interests like other profit-oriented entities. In view of the conflicting nature of these different roles of MIIS, the governance standards of MIIS need to be robust to engender market confidence and deter malpractice.
Let us first summarise the views of the committee. The report emphasises that the regulatory framework should ensure that MIIS, in pursuance of their business objectives, should not lose sight of the regulatory roles vested in them as the first-line regulators. At the same time, tightening the norms should not deter innovation or customer focused service provision by MIIS.
Accordingly, the report calls for a review of the requirements related to the appointment and the role and responsibility of directors on the board and key managerial personnel (KMPs). In addition, it proposes steps to improve the transparency and accountability in the functioning of MIIS, metrics for the monitoring of their performance and measures for the safekeeping and sharing of information held by them.
On MII structure, it recommends that independent directors must constitute two-thirds of the total strength of the board. It further says that the roles and responsibilities of the directors should be clearly defined, and the board should play an active role in the risk management framework of MIIs. The report notes that operational matters take up a significant time of the board whereas the board should focus on broader strategy, policy and other important matters.
Diese Geschichte stammt aus der November 29, 2022-Ausgabe von Business Standard.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent ? Anmelden
Diese Geschichte stammt aus der November 29, 2022-Ausgabe von Business Standard.
Starten Sie Ihre 7-tägige kostenlose Testversion von Magzter GOLD, um auf Tausende kuratierte Premium-Storys sowie über 8.000 Zeitschriften und Zeitungen zuzugreifen.
Bereits Abonnent? Anmelden
Proving mettle: Nifty metal index up 40% in 6 months
Stock run-up mainly driven by tighter supplies in the global markets
File tax return in mid-June, once all necessary info is available
Only taxpayers with single source of income or simple finances should file early
FPI shareholding in NSE firms at lowest in 11 yrs
Gap between the shareholding of FPls, DIls narrows to a new low of 163 bps
RBI loan norms singe PSU banks, infra financiers
Under proposed rules, lenders will have to allocate up to 5% for under-construction infra project financing
Every rupee invested in agri research yields ₹13.85: Study
A s investment in agriculture research decelerated between 2011 and 2022, a recent working paper has revealed that every rupee invested in agricultural research yields a return of nearly 13.85, surpassing returns from all other activities linked to farming.
Marine heat causes record-high coral bleaching in Lakshadweep
Extreme heat on the Indian coast and marine heatwave have caused record-high bleaching events, impacting the coral reefs in the Lakshadweep Sea.
Govt to go all out on solar to meet power demand
The Rajasthangovernment is looking to increase dependence on solar energy from the current 12-14 per cent to over 40 per cent of consumption by 2030 to bridge the power gap.
₹45K cr boost on cards for cargo
UTTAR PRADESH VIRENDRA SINGH RAWAT Lucknow,6 May The Uttar Pradesh (UP) government has earmarked nearly 45,000 crore for investments in highways and tertiary roads in the current financial year 2024-25 (FY25).
BJD obstructed Centre's schemes in Odisha: PM
Prime Minister (PM) Narendra Modi on Monday said the people of Odisha would in June gett their first Bharatiya Janata Party (BJP) chief minister (CM) who speaks Odia and understands the state's culture, in an apparent dig at Biju Janata Dal (BJD) chief and CM Naveen Patnaik.
A tough time for portfolio managers
Markets are going through a major shift in style and leadership, akin to the 2003-08 bull run