SEBI, the capital markets regulator, set up a committee on Monday to review and make recommendations for improving governance norms at stock exchanges and other market infrastructure institutions (MIIs).
The news comes amid allegations of corporate governance failures at the NSE, with various issues surfacing following a SEBI order revealing the presence of a ‘Himalayan yogi’ who influenced the exchange’s previous MD and CEO Chitra Ramkrishna’s decisions.
Apart from that, Ramkrishna had discussed with the yogi various internal confidential information, including as the NSE’s financial and business strategies, dividend scenario, and financial outcomes, and even consulted him on the exchange’s employee performance appraisals.
According to a statement, G Mahalingam, a former whole-time member of SEBI, would chair the six-member committee.
MD and CEOs of stock exchanges NSE and BSE, as well as depositories NSDL and CDSL; J N Gupta, MD of Stakeholders Empowerment Services; Aarti Nihalani, Partner, Oliver Wyman; Sandip Bhagat, Partner, S&R Associates; and Uttam Bagri, former chairman, BSE Brokers Forum are the other members of the committee.
The committee’s mandate includes offering recommendations on how to increase the role of MIIs’ governing boards and committees.
In addition, the panel will examine the requirements for the appointment, role, and responsibility of board directors and Key Managerial Persons (KMPs), as well as the development of appropriate metrics for monitoring various aspects of MII and KMP operations.
The committee will also improve accountability and transparency, evaluate the policy on the safekeeping and sharing of information held by MIIs, and revisit the governing board’s and KMPs’ codes of conduct and ethics.