Sebi's New Framework for Appointing Key Market Officials

Sebi has proposed new guidelines for appointing key officials in market institutions, including a cooling-off period before they join competing organizations. This is to ensure qualified, independent management while maintaining market integrity. The public is invited to comment on these proposals by December 12.

The Securities and Exchange Board of India (Sebi) unveiled a proposal on Friday aimed at enhancing the appointment and removal process of key officials within stock exchanges and market institutions.

Central to the proposal is the establishment of clear appointment procedures to ensure that market infrastructure institutions (MIIs) are led by qualified and independent personnel in roles like Compliance Officer, Chief Risk Officer, and Chief Information Security Officer. Sebi seeks to safeguard market integrity with effective cooling-off policies for these positions before they can transition to competing organizations.

Sebi has suggested implementing an external agency to identify qualified candidates, passing recommendations through the Nomination and Remuneration Committee for assessment and eventual decision-making by both MIIs' governing boards and Sebi. Public feedback on these changes is sought by December 12.

(With inputs from agencies.)