Sebi Thursday issued directions regarding formation and composition of seven mandatory committees at market infrastructure institutions (MIIs) -- stock exchanges, clearing corporations and depositories.
Sebi in its June board meeting decided to rationalise the constitution of the existing regulatory committees at MIIs as the scope of work of some of the committees was inter-related and overlapping.
According to the new norms, the committees for each institution are required to be set up under two broad categories -- functional committees and oversight committees, Sebi said in a circular Thursday.
"The MIIs shall submit a confirmation report to Sebi with regard to the formation and composition of the committees listed out ... in the circular, at the earliest but not later than three months from the date of this circular," it added.
The functional committees category will comprise a member selection committee, an investor grievance redressal committee and a nomination & remuneration committee, while the oversight committees category will include a standing committee on technology, an advisory committee, a regulatory oversight committee and a risk management committee.
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