SEBI seeks to relax market infrastructure institutions director qualification criteria
SEBI, India's stock market regulator, is looking to loosen up the rules for who can become directors at Market Infrastructure Institutions, basically, the big players like stock exchanges and depositories.
The idea is to make it simpler for qualified executives overseeing technology, cybersecurity, compliance, and risk mitigation to meet qualification and experience benchmarks without jumping through too many hoops.
SEBI proposes 10% shareholder exemption
Right now, anyone tied to trading members, clearing members, depository participants, and their associates is not allowed on these boards.
Sebi says this rule is too strict and unfairly blocks talent from companies with independent subsidiaries.
They are suggesting an extension of an existing exemption: if a company has a broad mix of shareholders and no shareholder, other than public sector shareholders, individually or together with persons acting in concert, directly or indirectly holds 10% or more stake, control or voting rights, its directors could be eligible.
Sebi hopes these changes will encourage flow of expertise/talent into the MIIs.