&w=3840&q=100)
Sebi mandates cooling-off period for directors at market infra institutions
Markets regulator Sebi has strengthened the governance framework of market infrastructure institutions -- stock exchanges, clearing corporations and depositories -- by prescribing a mandatory cooling-off period for directors before they can join a competing institution.
To give this effect, Sebi has amended Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018 or SECC Regulations as well as Depositories and Participants norms 2018.
In two separate notifications dated April 30, Sebi said that a non-independent director serving on the board of a market infrastructure institution will be eligible for direct appointment to the board of a competing institution after meeting two conditions -- a cooling-off period and prior approval of the appointment from the regulator.
"Non-independent director on the governing board of a recognised stock exchange or a recognised clearing corporation may be appointed in another recognised stock exchange or a recognised clearing corporation or a depository with the prior approval of the Board (Sebi), only after a cooling-off period as may be specified by the governing board of such recognised stock exchange or recognised clearing corporation," Sebi said.
After the expiry of the term at an MII, a public interest director can be appointed with the prior approval of Sebi for a further term of three years in another stock exchange or a clearing corporation or a depository.
Sebi clarified that the cooling-off period would be applicable only in case of appointment as a public interest director in a competing market infrastructure institution (MII).
The moves are aimed at strengthening governance at MIIs while safeguarding market integrity through effective cooling-off policies.
This came after the board of Sebi in March reviewed the norms for appointing specific key officials of stock exchanges and other market institutions, along with a cooling-off period before they can join a competing institution.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Indian Express
an hour ago
- Indian Express
Selective data sharing: Why SEBI slapped Rs 25 lakh fine on BSE
The Securities and Exchange Board of India (SEBI) imposed a Rs 25 lakh fine on the BSE on Wednesday for failing to provide equal and timely access to corporate disclosures for all stakeholders and for not taking adequate action against brokers frequently modifying trade details. In its 45-page order, SEBI noted that BSE's system architecture allowed select paid clients and members of its internal Listing Compliance Monitoring (LCM) team to access corporate announcements before they were released on the exchange's public website. This, the regulator said, resulted in a breach of fair disclosure norms. The penalty follows an inspection conducted between February 2021 and September 2022. The action against the BSE has come at a time when the National Stock Exchange (NSE) was facing regulatory action in the co‑location case. The NSE faced allegations that it provided preferential trading access —particularly data feeds and servers—to select brokers, enabling them to gain a high-frequency trading edge over others. The regulator found that the BSE's information-sharing process lacked mechanisms to ensure simultaneous and equal dissemination of material data, a critical requirement for preserving market transparency and preventing any unfair information advantage. Based on these findings, SEBI concluded that BSE violated Regulation 39(3) of the SECC (Stock Exchange and Clearing Corporations) Regulations, 2018, which requires exchanges to ensure fair, equitable, and non-discriminatory access to all market users. The regulator also flagged BSE's failure to implement a Really Simple Syndication (RSS) feed, which could have ensured uniform and real-time disclosure access. Although BSE later introduced a time delay to bridge the gap, SEBI said the move was reactive and came only after regulatory intervention revealed the deficiencies. In addition, SEBI identified serious gaps in BSE's oversight of client code modifications—changes to trade details allowed only for genuine errors. The exchange was found to have neither initiated disciplinary measures against brokers with frequent modifications nor effectively monitored error accounts, raising concerns over compliance diligence and potential misuse. The BSE failed to take disciplinary action against brokers who frequently modified trade details and did not sufficiently monitor 'error accounts', raising red flags about potential misuse and a lack of due diligence in transactions between unrelated institutional clients. The exchanges are supposed to be the first level of enforcement of regulatory rules and regulations. SEBI, in its order, emphasized the critical role of stock exchanges as 'the first layer of oversight' when dealing with material, price-sensitive information related to listed companies and their securities. 'As a premier recognised stock exchange, BSE is expected to maintain strong internal controls to manage and disseminate corporate announcements in a manner that fully aligns with its regulatory responsibilities,' the order stated. SEBI further noted that allowing employees of BSE's Listing Compliance Monitoring (LCM) team and select paid subscribers to access corporate disclosures before they were made available to the general public on the exchange's website undermined the principles of impartiality, fairness, and transparency expected from a frontline regulator. Additionally, the regulator found the exchange negligent in enforcing norms governing client code modifications. SEBI said this lax supervision further reflected a failure to uphold essential compliance standards.
Economic Times
an hour ago
- Economic Times
Dilip Buildcon shares surge 4% after Rs 1,060 cr Expressway project achieves provisional completion
Shares of Dilip Buildcon surged as much as 3.8% to a day's high of Rs 517 on the BSE on Thursday, June 26, after the company announced the provisional completion of a Rs 1,060 crore infrastructure project under the Government of India's Bharatmala Pariyojana. ADVERTISEMENT The project involved the construction of a 4-lane section of the Bangalore–Chennai Expressway from Km 127.000 (Bangarupalem) to Km 156.000 (Gudipala) in Andhra Pradesh, under Phase II/Package III. Also read: SBI appoints 6 banks for Rs 25,000 crore QIP, first share sale in eight years 'In accordance with the provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are pleased to inform you that the project—'Construction of 4-lane Bangalore–Chennai Expressway from Km 127.000 (Bangarupalem) to Km 156.000 (Gudipala) section in the State of Andhra Pradesh under Bharatmala on Hybrid Annuity Mode (Phase II/Package III)'—has been provisionally completed,' the company said in an exchange filing. Executed on a Hybrid Annuity Mode (HAM), the project has been declared fit for commercial operation effective May 9, with a Provisional Completion Certificate issued by the project was completed within 24 months and includes a 15-year operation and maintenance period post the Commercial Operation Date (COD), with the first-year O&M cost estimated at Rs 3 crore. ADVERTISEMENT Dilip Buildcon share price performanceOver the past year, shares of Dilip Buildcon have declined 6.81%. However, the stock has shown positive momentum more recently, rising 9.19% year-to-date (YTD), 8.45% in the last six months, 8.42% over the past three months, and 3.98% in the last month. ADVERTISEMENT On Wednesday, shares of Dilip Buildcon closed 1.9% higher at Rs 498.05 on BSE. (Disclaimer: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
Time of India
an hour ago
- Time of India
Dilip Buildcon shares surge 4% after Rs 1,060 cr Expressway project achieves provisional completion
Dilip Buildcon announced the provisional completion of a Rs 1,060 crore project under the Bharatmala Pariyojana, boosting investor focus. The project involved building a 4-lane section of the Bangalore–Chennai Expressway in Andhra Pradesh and has been declared fit for commercial operation. Executed under the Hybrid Annuity Model, it marks a key milestone in the company's infrastructure portfolio. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Shares of Dilip Buildcon surged as much as 3.8% to a day's high of Rs 517 on the BSE on Thursday, June 26, after the company announced the provisional completion of a Rs 1,060 crore infrastructure project under the Government of India's Bharatmala Pariyojana The project involved the construction of a 4-lane section of the Bangalore–Chennai Expressway from Km 127.000 (Bangarupalem) to Km 156.000 (Gudipala) in Andhra Pradesh, under Phase II/Package III.'In accordance with the provisions of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, we are pleased to inform you that the project—'Construction of 4-lane Bangalore–Chennai Expressway from Km 127.000 (Bangarupalem) to Km 156.000 (Gudipala) section in the State of Andhra Pradesh under Bharatmala on Hybrid Annuity Mode (Phase II/Package III)'—has been provisionally completed,' the company said in an exchange on a Hybrid Annuity Mode (HAM), the project has been declared fit for commercial operation effective May 9, with a Provisional Completion Certificate issued by the project was completed within 24 months and includes a 15-year operation and maintenance period post the Commercial Operation Date (COD), with the first-year O&M cost estimated at Rs 3 crore. Dilip Buildcon share price performanceOver the past year, shares of Dilip Buildcon have declined 6.81%. However, the stock has shown positive momentum more recently, rising 9.19% year-to-date (YTD), 8.45% in the last six months, 8.42% over the past three months, and 3.98% in the last Wednesday, shares of Dilip Buildcon closed 1.9% higher at Rs 498.05 on BSE.: Recommendations, suggestions, views, and opinions given by the experts are their own. These do not represent the views of The Economic Times)
