SEBI has proposed new guidelines for hiring key management personnel (KMPs) at market infrastructure institutions (MIIs), including stock exchanges. The market regulator suggested involving an independent external agency and SEBI itself in the recruitment process for critical positions like heads of technology, operations, and compliance.
These, among other proposals, have been set out in a Consultation Paper dated November 22, which also provide for introducing a statutory cooling-off period for KMPs and directors of MIIs before they can take up any position in competing MII. This shall enhance governance arrangements and eliminate potentials for conflict of interest in the operations of an MII.
The consultation paper reflects the SEBI priority to promote transparency and enhance the appointments of seniors in MIIs so that these align with the best practices in the industry as well as regulatory intents.
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Source: Moneycontrol
News Desk
