SEBI Issues Governance Guidelines, Asks MIIs To Resolve Whistleblower Complaints In 60 Days

SEBI also pointed out guidelines for back office vendors, public interest directors meetings, and setting up a standard operating procedure for disciplinary actions against Key Management Personnel

These guidelines will come into effect from April 1, the regulator said via an official circular.

Source : PTI

The Securities and Exchange Board of India (SEBI) on Friday put in place guidelines to help improve the accountability and governance of stock exchanges and other market infrastructure institutions (MIIs). The capital markets regulator urged the MIIs to look into resolving whistleblower complaints within 60 days of receipt.

Further, the regulator asked MIIs, like depositories, and stock exchanges to adopt RegTech (regulatory technologies) and SupTech (supervision technologies) to enhance the scrutiny mechanisms, reported PTI.

SEBI also pointed out guidelines for back office vendors, public interest directors (PIDs) meetings, setting up a standard operating procedure for disciplinary actions against Key Management Personnel (KMPs), board meeting agenda and minutes’ disclosure, and quarterly and half-yearly reporting by the Compliance Officer and the Chief Risk Officer respectively. These guidelines will come into effect from April 1, the regulator said via an official circular.

Regarding whistleblower policy, the markets regulator urged MIIs to find a solution for whistleblower complains in 60 days of receipt. The authority also specified the role of the audit committe in supervising whistleblower complaints and said it is tasked with receiving and investigating these complaints and making appropriate decisions on the same.

The regulator said that the committee will have to submit a detailed quarterly report to the MII’s Governing Board highlighting the complaints it received, the actions taken, and the unresolved matters. If the committee cannot reach a decision on any issue, the same shall be escalated to the Governing Board, it noted.

SEBI also asked MIIs to put in place systems that enable members or participants like clearing members, stock brokers, etc, to make submissions online. These systems should send alerts and reports to back regulatory objectives, the body said.

It added that MIIs are required to reveal crucial information about their members or participants on their websites including details of investor grievances for the last three fiscal years, net worth in the previous financial year, and other important information.