SEBI Panel on Governance of Stock Exchanges

April 6, 2022

SEBI has constituted a committee that will review and make recommendations for the strengthening of governance norms at market infrastructure institutions (MIIs) and stock exchanges.

Overview:

The committee has been constituted after the alleged corporate lapses of governance at NSE were revealed.
SEBI had revealed the existence of a ‘Himalayan yogi’ who had influenced the decisions that were taken by Chitra Ramkrishna, the ex MD and CEO of the organization.
Ramkrishna had also shared confidential information, including the business and financial plans of the NSE, financial results, and dividend scenario with the yogi and even took his consultation about the performance appraisals of the employees of NSE.

About the committee members

The committee consists of six members and G Mahalingam, a former whole-time member of SEBI, will be chairing this committee. The other members include CEOs and MDS of BSE and NSE, and CDSL and NSDL; Aarti Nihalani, Partner, Oliver Wyman; J N Gupta, MD of Stakeholders Empowerment Services; Uttam Bagri, former chairman, BSE Brokers Forum; and Sandip Bhagat, Partner, S&R Associates.

Functions of the committee

The committee will be making recommendations on various measures so that the role played by governing committees and boards of MIIs is strengthened. The panel will also be reviewing the requirements that are related to the role, appointment, and responsibility of Key Managerial Persons (KMPs), and directors. The panel will also look to develop various effective metrics for monitoring the functioning of KMPs and MIIs. The committee will also be enhancing transparency and accountability, reviewing the policy on sharing and safekeeping of information that is held by MIIs. They will also look to make changes to the code of ethics and conduct for the directors of the KMPs and governing boards.

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