SEBI/HO/MRD/POD - III/CIR/P/2024/127 — THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992

CIRCULAR SEBI/HO/MRD/POD - III/CIR/P/2024/127 September 24, 2024 To, All Recognized Stock Exchanges All Recognized Clearing Corporations All Depositories Dear Sir/ Madam, Sub: Parameters for Performance Evaluation of Market Infrastructure Institutions Regulation 33(6) of the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018 (hereafter referred to as "SECC Regulations, 2018") and Regulation 31(6) of the SEBI (Depositories and Participant Regulations, 2018 (hereafter referred to as "D&P Regulations, 2018") states that every recognised stock exchange , recognised clearing corporation and depository (collectively referred as Market Infrastructure Institutions (MIIs)) shall appoint an independent external agency to evaluate its performance and the performance of its statutory committees within such periodicity and in such a manner as may be specified by the Board . In order to bring consistency and uniformity with respect to evaluations to be done by the external agency , it was felt that basic minimum standards and principles should be developed along with weightages . Accordingly, the matter was discussed at the Industry Standards Forum (ISF) of MIIs where the broad criteria, the weightage for each criterion, sub-parameters under each criterion, etc. were deliberated. For each sub -parameter, sample Key Performance Indicators (KPIs) , both quantitative and qualitative in nature, were identified by SEBI in consultation with the ISF. Based on the deliberations at the ISF of MIIs and subsequent internal deliberations , the broad framework with basic minimum criteria for independent external evaluation of performance of MIIs has been approved by the Board in its meeting held on June 27, 2024. The minimum criteria for the independen