The panel will be headed by former SEBI whole-time member G Mahalingam.
new Delhi:
Capital markets regulator SEBI on Monday constituted a committee to review and make recommendations for further strengthening of governance norms in stock exchanges and other market infrastructure institutions (MIIs).
The development comes in the backdrop of alleged corporate governance lapse at the NSE, in which several issues came to the fore after a Sebi order, which revealed the existence of a ‘Himalayan Yogi’, influenced the decisions of former MD and CEO of the exchange, Chitra Ramakrishna. did.
In addition, Ramakrishna had shared some internal confidential information with Yogi including NSE’s financial and business plans, dividend outlook, financial results and even consulted him on the performance appraisal of the employees of the exchange.
According to a statement, the six-member committee will be headed by former whole-time member of SEBI G Mahalingam.
The other members of the committee are – MD and CEO of stock exchanges NSE and BSE, and depositories – NSDL and CDSL; JN Gupta, MD, Stakeholders Empowerment Services; Aarti Nihalani, Partner, Oliver Wyman; Sandeep Bhagat, Partner, S&R Associates; and Uttam Bagri, former Chairman, BSE Brokers Forum.
The terms of reference of the Committee include making recommendations on measures to strengthen the Governing Board of MII and the role played by the Committees.
In addition, the panel will review requirements relating to the appointment and role and responsibility of directors on the board and key managerial persons (KMPs), and develop effective metrics to monitor various aspects of the functioning of MIIs and KMPs.
Also, the committee will enhance accountability and transparency, review the information security and sharing policy conducted by MII and revisit the code of conduct and code of conduct for the Governing Board and directors of KMPs.