SEBI – Submission of report of the Committee for Review of Ownership and Governance of Market Infrastructure Institutions

PRESS RELEASE NO. 254/2010, DATED 23-11-2010

The Securities and Exchange Board of India constituted a Committee under the Chairmanship of Dr. Bimal Jalan, (Former Governor, Reserve Bank of India) to examine issues arising from the ownership and governance of Market Infrastructure Institutions (MIIs). Dr. Bimal Jalan submitted the report to Chairman, SEBI on November 22, 2010.

The committee deliberated and recommended primarily on the following issues among others after going through a consultative process :

1.      Ownership norms – Structure of MIIs, ownership norms for the MIIs, ownership and control of an MII in another class of MII, foreign participation etc.

2.      Governance norms – The board composition for the three MIIs and disclosures to be made by board members.

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3.  Measures for conflicts resolution – Appointment and compensation for senior management of the MII including MD/CEO, measures to ensure autonomy of regulatory departments and requirements for a compliance officer etc.

4.  Other issues – Listing of MIIs, net worth requirements, distribution of profits of MIIs, related businesses that can be entered into by MIIs, replacement of MIMPS Regulations and powers to SEBI.

The other members of the Committee were :

(a)  Dr. K.P. Krishnan, Joint Secretary, Ministry of Finance (till June 30, 2010), Secretary, Economic Advisory Council to the Prime Minister of India (from July 1, 2010)

(b)  Shri. Kishor Chaukar, Managing Director, Tata Industries

(c)  Shri. Uday Kotak, Managing Director, Kotak Mahindra Bank Ltd.

(d)  Prof. G. Sethu, Officer on Special Duty, National Institute of Securities Markets

(e)  Dr. K. M. Abraham, Whole Time Member, SEBI

(f)  Shri J.N. Gupta, Executive Director, SEBI (Member Secretary).

The report of the Committee is available on SEBI’s website (www.sebi.gov.in). Public comments on the same may be sent to rajeshkd@sebi.gov.in by December 31, 2010 in the following format :—

Sr. No. Recommendation of the Committee Comment with rationale
1. Insert reference to paragraph in the Committee’s Report Provide your comment here

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