“To strengthen the governance framework for stock exchanges, clearing corporations and depositories, it is required that the key management personnel (KMPs) of MIIs in the crucial areas of operations such as compliance, risk management, technology and information security are of appropriate stature and independence,” Sebi said in a circular.
The regulator said MIIs should engage an independent external agency to identify and recommend suitable candidates for appointment as compliance officer, chief regulatory officer and chief technology officer or by whatever designations called. The agency would have to submit its recommendations to the nomination and remuneration committee (NRC) of the MII.
The NRC will evaluate the recommendations of the agency and submit its recommendations for appointment of such KMPs to the governing board of the MII, which in turn would take the final decision.
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