SEBI has proposed changes to the eligibility criteria for directors of market infrastructure institutions (MIIs) to broaden the pool of suitable candidates while addressing conflicts of interest. The consultation also proposes a board-approved standard operating procedure specifying qualifications, experience and skills for critical technology, information security, compliance and risk roles. Vacancies in these positions would be filled within three months. Comments are invited by 30 September 2026.
The proposed procedure would require the board to define the expertise expected in critical functions, providing a clearer basis for recruitment and succession. Public interest directors and nomination and remuneration committees would need to consider whether those criteria reflect the institution’s operational risks and whether credible arrangements exist to fill vacancies. Broader director eligibility would also require careful assessment of candidates’ relationships and independence.
Sources: SEBI consultation | Consultation text
