SEBI/HO/MRD/POD - 3/P/CIR/2024/162 — THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992

CIRCULAR SEBI/HO/MRD/POD - 3/P/CIR/2024/162 November 22, 2024 To, All Recognized Stock Exchanges All Recognized Clearing Corporations All Depositories Sir/ Madam, Sub: Guidelines to Stock Exchanges, Clearing Corporations and Depositories Based on the recommendations of the Committee on Strengthening of Governance of Market Infrastructure Institutions (MIIs) i.e. Stock Exchanges, Clearing Corporations and Depositories and subsequent deliberations in the Industry Standards Forum (ISF) of MIIs on certain issues, the following guidelines are provided to MIIs: 1. Mechanism to enhance Accountability 1.1. Meetings of Public Interest Directors and their reporting 1.1.1. As per the Code of Conduct for Public Interest Directors (PIDs) specified under Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018 (hereinafter referred as "SECC Regulations, 2018") and Securities and Exchange Board of India (Depositories and Participants) Regulations, 2018 (hereinafter referred as "D&P Regulations, 2018"), PIDs of the MII shall meet separately, at least once in every six months , to exchange views on critical issues concerning the MII . 1.1.2. All PIDs shall mandatorily attend such meetings. 1.1.3. The objectives of such meetings shall , inter alia , include the following: 1.1.3.1. To review the status of compliance with all applicable regulations, circulars, guidelines, letters issued by SEBI from time to time; 1.1.3.2. To review the functioning of Vertical-1 i.e. " Critical Operations " and Vertical -2 i.e. "R "Regulatory, Compliance, Risk Management and Investor Grievances "; "; 1.1.3.3. To review the adequacy of resources (both financial and human) for functions under Verticals 1 and 2; 1.1.3.4. To identify important issues which may involve conf