Sebi Proposes New Measures for Appointment of Public Interest Directors

Sebi has proposed new procedures for appointing Public Interest Directors (PIDs) on market infrastructure institutions such as stock exchanges, clearing corporations, and depositories. The move aims to enhance shareholder participation and ease of doing business for PIDs. The regulator has sought public comments on the proposals till September 12.

Sebi has unveiled new proposals to streamline the appointment process for Public Interest Directors (PIDs) on stock exchanges, clearing corporations, and depositories. The aim is to bolster shareholder involvement and facilitate business operations for PIDs.

Key proposals include easing documentation requirements for PID appointments, allowing payment of fixed stipend in addition to sitting fees, and reducing the cooling-off period. Sebi underscored the vital role of PIDs in maintaining corporate integrity and governance across Market Infrastructure Institutions (MIIs).

The regulator also suggested retaining the current PID appointment process, with the addition of an alternative where Sebi would review candidate applications before shareholder approval. Public feedback on these proposals is invited until September 12.

(With inputs from agencies.)