SEBI came out with guidelines for the evaluation of the performance of statutory committees of Market Infrastructure Institutions (MIIs) and Mechanism for internal evaluation of Performance of MIIs and its Statutory Committees.
Under the guidelines, MIIs comprising stock exchanges, clearing corporations, and depositories — are required to appoint an independent external agency to evaluate their performance and the functioning of their statutory committees.
Timelines for External Evaluation
The first independent external evaluation shall be only for the Financial Year (FY) 2024-2025. The report of the same shall be submitted to the Governing Board of the MII and SEBI by September 30, 2025.
The subsequent independent external evaluation(s) shall be for a block of next three FYs and so on. Upon completion, a report in this regard shall be submitted to the Governing Board of the MII and SEBI within 6 months from the end of the 3rd FY to be evaluated. Internal Evaluation of Performance of MIIs and its Statutory Committees
The MIIs shall develop the set of criteria for comprehensive internal evaluation of performance of the MII and its Statutory Committees.
The report of the internal evaluation of the MII and its Statutory Committees shall be submitted to the Governing Board of the MII within 3 months from the end of each FY. The first report shall be for FY 2024-25.
The provisions of this Circular shall come into force from 30th day of its issuance.
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