Capital markets regulator SEBI on Monday constituted a committee for reviewing and making recommendations for further strengthening of governance norms at stock exchanges and other market infrastructure institutions (MIIs).
The development comes in the backdrop of alleged corporate governance lapses at NSE, with several issues coming to the fore following a SEBI order that disclosed existence of a ‘Himalayan yogi’ who influenced the decisions of the exchange’s former MD and CEO Chitra Ramkrishna.
Apart from this, Ramkrishna had shared certain internal confidential information, including financial and business plans of NSE, dividend scenario, financial results with the yogi and even consulted him over the performance appraisals of the exchange’s employees.
The six-member committee will be chaired by G Mahalingam, former whole-time member of SEBI, according to a statement.
The other members of the committee are — MD and CEOs of stock exchanges NSE and BSE, and 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.
The terms of reference of the committee include making recommendations on measures for strengthening the role played by governing board and committees of MIIs.
In addition, the panel will review the requirements related to appointment and role and responsibility of directors on the board and Key Managerial Persons (KMPs), and developing effective metrics for monitoring various aspects of the functioning of MIIs and KMPs.
Also, the committee will enhance accountability and transparency, review the policy on safekeeping and sharing of information held by MIIs and revisit the code of conduct and code of ethics for directors of the governing board and KMPs.