Sebi Curbs Stock Exchange Chief Powers
- MUMBAI, India - india's Securities and Exchange Board of India (SEBI) is seeking to bolster board oversight of critical functions within market infrastructure institutions (miis).The proposal, outlined in...
- Under the proposed rules, MIIs will be required to appoint two officers to head trading and risk and compliance functions.
- The SEBI's regulatory and risk management committee plans to meet with these officers every quarter, excluding the MII managing director from these sessions.
SEBI is taking action to strengthen oversight of IndiaS market infrastructure institutions. The securities and Exchange board of India (SEBI) is proposing significant governance changes. Key among these is the appointment of new officers for trading, risk, and compliance, who will report directly to the board and SEBI, enhancing regulatory compliance. These changes aim to boost accountability and clarity in the financial markets. The initiative reflects SEBI’s commitment to fortifying risk management frameworks and potentially paving the way for a public listing of India’s top derivatives exchange. News Directory 3 has the latest details on this developing story. Discover what’s next as these proposals shape the future of India’s financial landscape.
India’s SEBI Eyes Stronger Oversight of market Infrastructure Institutions
Updated June 24, 2025
MUMBAI, India – india’s Securities and Exchange Board of India (SEBI) is seeking to bolster board oversight of critical functions within market infrastructure institutions (miis).The proposal, outlined in a consultation paper released Tuesday, aims to enhance the supervision of trading, risk management, regulatory compliance, and other key operations.
Under the proposed rules, MIIs will be required to appoint two officers to head trading and risk and compliance functions. These officers will become part of the governing board, adding their expertise to the decision-making process.
The SEBI’s regulatory and risk management committee plans to meet with these officers every quarter, excluding the MII managing director from these sessions. This measure intends to foster open communication and independent assessment.
Currently, onyl the managing director is mandated to be on the MII board. The SEBI proposal emphasizes that the newly appointed executive directors should hold a position of comparable stature to the managing director. These officers will also report to both the exchange governing board and the SEBI on a quarterly basis. They will be restricted from serving on any other boards as members.
This initiative follows SEBI’s recent move to increase the number of senior positions at MIIs requiring governing board approval. The goal is to bring India’s top derivatives exchange closer to a potential public listing, enhancing transparency and accountability in the markets.
What’s next
The proposal is open for public comment, and SEBI will review feedback before finalizing the new regulations. The enhanced oversight is expected to strengthen the risk management framework and promote stability in India’s financial markets. The move underscores SEBI’s commitment to ensuring robust derivatives trading and compliance across all market infrastructure institutions.