Sebi to amend norms governing stock exchanges

Capital market regulator Sebi on Saturday said the norms governing stock exchanges and other market infrastructure institutions would be reviewed and amended after a public consultation process.

At a meeting here, Sebi’s board discussed the review of regulations and relevant circulars pertaining to market infrastructure institutions (MIIs) -- stock exchanges, depositories and clearing corporations.

“The board noted the recommendation of the Bimal Jalan Committee to review the working of MIIs after five years.  After deliberation, the board approved the proposal for comprehensive review of Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012 and SEBI (Depositories and Participants) Regulations, 1996 and to seek public comments on the same,” the regulator said in a statement.

Sebi further said a consultative paper seeking public comments on this matter would be released in due course.

Talking to reporters after the board meeting, Sebi Chairman U K Sinha said, “The five-year period is over. Sebi has come out with many circulars and we would see how those changes can be incorporated in the regulations itself.”

Sebi’s whole-time member S Raman said, “Once in five years we have got to make an assessment of how regulations are played out and whether any amendments are required on the basis of representations received from stakeholders.

“So we are floating a discussion paper.”

The Jalan committee had come out with extensive recommendations on how MIIs such as stock exchanges should be owned, governed and run, based on which Sebi had overhauled its regulations five years ago, including by way of allowing stock exchanges to get listed but only on another exchange’s platform.

At Saturday’s meeting, Sebi’s board was also apprised of the developments with respect to steps taken by the regulator in connection with International Financial Service Centre, status of compulsory delisting of long suspended companies and companies on the dissemination board of national exchanges etc.

The board was also appraised of the process of the Settlement of Administrative and Civil Proceedings and the reasons for pendency of various applications thereon, for more than two years.

Before their meeting, Sebi’s board and top officials were also addressed by Finance Minister Arun Jaitley.

Sinha said, “We discussed various items for implementation post Budget announcement and the status where Sebi has to take action alone, areas where Sebi has to take action in coordination with other agencies like RBI and the government, and areas where government has to take action.

“By and large, we have come across a plan of action for implementing those decisions. The Finance Minister was informed about the developments in the market, current issues Sebi and market is facing and we had a very healthy discussion on that.”