Regulatory Alerts2025-12-12
Provisions relating to Strengthening Governance of Market Infrastructure Institutions (MIIs)
The Securities and Exchange Board of India (SEBI) has amended the SECC Regulations, 2018 and D&P Regulations, 2018 to strengthen the governance of Market Infrastructure Institutions by mandating the appointment of Executive Directors for critical operational and regulatory verticals. These Executive Directors are required to serve on the Governing Board, report directly to the Managing Director, and establish independent reporting lines for key management personnel such as the Chief Technology Officer and Chief Risk Officer. The regulations also introduce specific performance appraisal mechanisms involving statutory committees and set a compliance timeline requiring the appointment of the first and second Executive Directors within six and nine months, respectively.