Sebi mulls capping of bourse CEO tenure

Regulator Sebi is considering capping tenure of stock exchange CEOs to maximum two terms of five years each, as part of an overhaul of regulations for ownership and governance norms for market infrastructure institutions.

Besides, the watchdog is planning to bring in new ownership norms for setting up of stock exchanges as it feels that entry of new players can benefit investors with better product choices and effective cost structures, a senior official said. At its next board meeting scheduled for June 21, Sebi would propose coming out with a consultation paper for various regulatory and procedural requirements for setting up of MIIs, including stock exchanges.

Sebi is also looking to harmonise the shareholding limit across stock exchanges, clearing corporations and depositories, according to a senior official.

Further, it is proposed to expand the definition of key managerial personnel at these institutions whereby a person up to two levels below MD/ CEO would be deemed as a key managerial personnel. In March this year, a committee, headed by former RBI Deputy Governor R Gandhi, had submitted a report on review of regulations and relevant circulars pertaining to MIIs (Market Infrastructure Intermediaries) in March this year.

Based on the panel's recommendations, Sebi plans to change the existing norms in this regard. "A person may serve as MD/ CEO of a MII for a maximum of two terms of up to five years each or up to 65 years of age, whichever is earlier," the official said.