SEBI has put forward new proposals for the recruitment of key management personnel (KMPs) at market infrastructure institutions (MIIs), such as stock exchanges and clearing corporations.

According to a consultation paper released on November 22, SEBI suggests that MIIs should involve an independent external agency in the hiring process for heads of technology, operations, and compliance.

SEBI also recommends involving itself in the reappointment or termination processes of these KMPs. In addition, SEBI has proposed the implementation of a mandatory cooling-off period for KMPs and directors before they can join a competing MII.

This measure aims to prevent conflicts of interest and ensure a fair transition between competing entities, including stock exchanges, clearing corporations, and depositories.

These proposed changes reflect SEBI's commitment to improving governance and operational integrity in India's financial markets.