SEBI forms panel to improve governance of market infra institutions
- SEBI formerd committee for strengthening governance norms at the MIIs
- Panel will be headed by G Mahalingam, a former whole-time member of SEBI
- This comes after the alleged corporate governance lapses at NSE
Market regulator Securities Exchange Board of India (SEBI) on April 4 constituted an ad-hoc committee for reviewing and suggesting measures for further strengthening governance norms at the stock exchange and other market infrastructure institutions (MIIs).
This comes after the alleged corporate governance lapses at NSE, with several issues coming to the front following a SEBI order that disclosed the existence of a ‘Himalayan Yogi’ who influenced the decisions of the exchange’s former MD and CEO Chitra Ramakrishna.
Besides, Ramakrishna had shared certain internal confidential information including financial and business plans of NSE, dividend scenario, and financial results with the yogi. She also consulted him over the performance appraisals of the exchange's employees
The six-member panel will be headed by G Mahalingam, a former whole-time member of SEBI, according to the statement. Other members of the committee are J N Gupta, MD of Stakeholders Empowerment Services; Aarti Nihalani, Partner, Oliver Wyman; Sandip Bhagat, Partner, S&R Associates and Uttam Bagri, Former Chairman, BSE Brokers Forum.
The managing directors and chief executive officers of NSE, BSE, NSDL and CDSL have also been included in the panel, SEBI said.
The market regulator said the committee will be making recommendations on measures for strengthening the role played by the Governing Board and Committees of MIIs. They will also review the requirements related to the appointment and role responsibility of directors on the board and key managerial persons (KMPs).
In addition, the panel will also develop effective metrics for monitoring various aspects of the functioning of MIIs and KMPs, enhancing accountability and transparency and reviewing the policy on safekeeping and sharing of information held by MIIs.
Revisiting the "code of conduct and code of ethics" for directors of the governing board and KMPs is also listed among the tasks that will be assigned to the committee, the press release stated.