Capital markets regulator Sebi on Monday set up a committee to review and make recommendations to further strengthen governance standards at the exchange and other market infrastructure institutions (MIIs).
The development comes amid alleged corporate governance lapses at NSE, with several issues highlighted following an order by Sebi which revealed the existence of a ‘Himalayan yogi’ who influenced the decisions of the former Managing Director and CEO of the exchange, Chitra Ramkrishna.
Apart from that, Ramkrishna had shared some internal confidential information including financial and business plans of NSE, dividend scenario, financial results with the yogi and even consulted him on the performance reviews of the employees of the exchange.
The six-member committee will be chaired by G Mahalingam, a former full-time member of Sebi, according to a statement.
Other committee members are – MD and CEO of NSE and BSE exchanges, and depositories – NSDL and CDSL; JN Gupta, MD of Stakeholder Empowerment Services; Aarti Nihalani, Partner, Oliver Wyman; Sandip Bhagat, Partner, S&R Associates; and Uttam Bagri, former chairman of the BSE Brokers Forum.
The committee’s mandate includes making recommendations on measures to strengthen the role played by the IBD Board and Committees.
In addition, the panel will review requirements related to the appointment, role and accountability of board directors and key management persons (KMPs), and develop effective measures to monitor various aspects of IBD operations. and KMPs.
In addition, the committee will strengthen accountability and transparency, review the policy for retaining and sharing information held by ITNs, and revise the code of conduct and code of ethics for board directors and KMPs.
(Edited by : Jomy Jos Pullokaran)