SEBI mandates 2 EDs for MIIs, strengthening governance and oversight

• SEBI mandates appointment of two Executive Directors (EDs) at Market Infrastructure Institutions (MIIs) to enhance governance and operational oversight.
• ED of Vertical 1 will manage "critical operations," while ED of Vertical 2 will oversee regulatory functions, compliance, risk, and investor grievances; both will join the MII's Governing Board.
• Hiring for ED positions requires open advertisements, and MIIs must submit at least two names to SEBI for approval, along with compensation details.
• Performance of EDs will be assessed by Public Interest Directors (PIDs) and relevant committees (SCOT, ROC, RMC) through quarterly independent reviews.
• MIIs have a phased rollout: first ED within six months, second within nine months of regulations taking effect, with some flexibility for operational constraints.

Why It Matters: SEBI's new ED mandate strengthens market governance and investor protection.