Sebi to tweak 'fit & proper' regime for bourses, clearing corporations

Segregation between individuals and entity; At present, disqualification of a key person could have bearing on the stock exchange's or clearing corporation's status

The Securities and Exchange Board of India (Sebi) is mulling changes to the 'fit & proper' criteria for market infrastructure institutions (MIIs), such as stock exchanges, in a bid to segregate the role of an individual from the entity, said sources.

Under the current framework, wrongdoing by senior personnel could lead to a debarment of the MIIs such as stock exchanges, depository participants and clearing members—with quite a few such instances in the past.

Additionally, Sebi is also mulling to introduce a clause through which any order passed against an MII will not affect their operations, unless it is specifically