Sebi issues 'financial disincentives' guidelines for bourses, other MIIS

The new framework will be applicable from July 1, 2024, the Securities and Exchange Board of India Sebi) said in a circular

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• SURVEILLANCE LAPSES

Sebi on Thursday came out with a framework on “financial disincentives” for stock exchanges and other market infrastructure institutions for their lapses in detecting abnormal or suspicious trading activities to safeguard the interest of retail investors.

The amount of financial disincentives for surveillance-related lapses would be determined on the basis of the total annual revenue of a Market Infrastructure Institution (MII) — stock exchange, clearing corporation and depository — during the previous financial year and the number of instances of such lapses during the financial year.

The new framework will be applicable from July 1, 2024, the Securities and Exchange Board of India (Sebi) said in a circular.

“The general objective of surveillance by MIIs is thus to monitor the market to detect and deter manipulation or abusive trading that affects the integrity of the market, and to provide information that supports the regulator’s enforcement actions,” Sebi said.