There is significant growth in MIIs’ investor base, volumes, revenue, and profitability, emphasizing their critical role as first-line regulators and public utilities. The proposals focus on three key areas,
1. Mandating the appointment of two Executive Directors (EDs) to the Governing Board, one for “Critical Operations” and another for ‘Regulatory, Compliance, Risk Management, and Investor Grievances’,
2. Clearly defining the roles and responsibilities of the Managing Director (MD), the proposed EDs, and key management personnel such as the Chief Technology Officer (CTO) and Chief Information Security Officer (CISO),
3. Establishing clear norms for directorships of MDs and EDs in other companies.
— These measures aim to ensure that MIIs prioritize public interest, technology, operations, and risk/compliance over commercial considerations, foster robust succession planning, and enhance the safety and reliability of the securities market. The comments/ suggestions from stakeholders are invited.