Market Infrastructure Institutions

SEBI introduces financial disincentives for surveillance lapses at Market Infrastructure Institutions (“MIIs”)

SEBI, vide circular dated June 6, 2024, has issued the Framework of Financial Disincentives for Surveillance Related Lapses (“SRL”) at MIIs, (“Framework”). The key provisions of the Framework are as follows:

1. the amount of financial disincentives will be determined on the basis of total annual revenue of the MII, as an indicator of the size and impact of the MII on the market ecosystem, during the previous financial year as per the latest audited consolidated annual financial statement and the number of instances of SRL during the financial year;
2. the financial disincentive(s), if imposed, will be credited by the MII within 15 (fifteen) working days, to the Investor Protection and Education Fund;