TMI BlogCommittees at Market Infrastructure Institutions (MIIs)X X X X Extracts X X X X X X X X Extracts X X X X ..... ucture Institutions or MIIs) to constitute various committees in order to ensure effective oversight on the functioning of MIIs. 2. Based on decisions taken by SEBI Board in its meeting dated June 21, 2018, inter alia related to rationalization of statutory committees at MIIs, Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018 [SECC Regulations, 2018] and SEBI (Depositories and Participants) Regulations, 2018 [SEBI (D P) Regulations, 2018], were notified on October 3, 2018 and the SECC Regulations, 2012 and SEBI (D P) Regulations, 1996 were repealed. 3. Given that the scope of work of some of the committees at MIIs were inter-related and overlapping, SEBI Board, in its meeting dated Jun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inciples for composition and quorum of the statutory committee at MIIs shall be as under, which shall be applicable to all committees with an exception for Investor Grievance Redressal Committee (IGRC): a. On each committees at MIIs, except IGRC, the number of Public Interest Directors (PIDs) shall not be less than the total of number of shareholder directors, Key Management Personnel (KMPs), independent external persons, etc. put together, wherever shareholder directors, KMPs, independent external persons, etc. are part of the concerned committee. b. PID shall be chairperson of each committee at MII. c. To constitute the quorum for the meeting of the MII committee, the number of PIDs on each of the committees at MIIs shall not be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ii. It is clarified that the above limitation on maximum number of committees that a PID can be member of, shall be applicable only to statutory committees prescribed by SEBI under SECC Regulations 2018 and SEBI (D P) Regulations, 2018, and circulars issued thereunder. The said requirement shall not be applicable to committees constituted under Companies Act, 2013, SEBI (Listing Obligations and Disclosure Requirements), 2015, amongst others. iii. In case of non-availability of adequate number of PIDs in a MII, the relevant MII shall take steps to induct more PIDs in order to fulfil the requirement of composition of committees within a MII. d. Meeting of PIDs: i. As per code of conduct for PIDs provided in SECC Regulations 2018 S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iew in the manner prescribed by SEBI for PIDs. Further, the maximum tenure limit of Independent external persons in a committee of MII shall be at par with that of PIDs, as prescribed under Regulation 24(3) of the SECC regulations 2018. 8. On the aspect related to commencement of operations by a newly recognised Stock exchange/ Clearing Corporation, it has been decided that the recognised stock exchange after grant of recognition can commence trading operations with a minimum of 25 trading members, in place of earlier requirement of minimum of 50 trading members. Similarly, a newly recognised clearing corporation can now commence clearing and settlement operations with a minimum of 10 clearing members, in place of earlier requirement of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shall submit a confirmation report to SEBI with regard to the formation and composition of the Committees listed out in the Annexure A and compliance with other norms prescribed in the circular, at the earliest but not later than three months from the date of this circular. 11. MIIs are directed to: a. take necessary steps to put in place systems for implementation of the circular, including necessary amendments to the relevant bye-laws, rules and regulations; b. bring the provisions of this circular to the notice of their members and also disseminate the same on their websites; and c. communicate to SEBI, the status of implementation of the provisions of this circular in the Monthly Development Report. 12. This circular is b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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