SEBI Tightens Grip: New Guidelines for Market Infrastructure Institutions

Securities and Exchange Board of India (SEBI) introduced new guidelines to enhance accountability in stock exchanges and other market infrastructure institutions (MIIs). The guidelines, effective April 1, include measures for addressing whistleblower complaints, adopting RegTech and SupTech, and enhancing transparency and compliance among market participants.

The Securities and Exchange Board of India (SEBI) has announced new guidelines aimed at bolstering accountability and governance within market infrastructure institutions (MIIs), including stock exchanges, clearing corporations, and depositories. A pivotal reform mandates that MIIs resolve whistleblower complaints within 60 days of receipt.

Further, these institutions are encouraged to integrate advanced technological frameworks, such as RegTech and SupTech, to improve their regulatory and supervisory mechanisms. This entails enabling online submissions by members like stock brokers and generating regulatory alerts automatically.

The guidelines, which take effect on April 1, also require MIIs to increase transparency through consistent disclosure of key information and regulatory actions on their websites, ensuring better regulatory compliance and risk management across the board.

(With inputs from agencies.)