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Corporate Laws Central Ministry of Finance Securities and Exchange Board of India Act, 1992

Framework of Financial Disincentives for Surveillance Related Lapses at Market Infrastructure Institutions

06-Jun-2024 | SEBI/HO/ISD/ISD-PoD-1/P/CIR/2024/73

SEBI has issued circular on Framework of Financial Disincentives for Surveillance Related Lapses at Market Infrastructure Institutions (MII).

By virtue of the circular, the amount of financial disincentives as per the framework of financial disincentives for Surveillance Related Lapses (FDSRL) at MIIs, as mentioned in attachment shall 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 Surveillance Related Lapses during the Financial Year.

Also, MIIs shall disclose on their websites (and in their respective annual reports) the details pertaining to financial disincentive(s) if any, credited to the SEBI Investor Protection and Education Fund and listed MIIs make appropriate disclosures required in terms of the Securities and Exchange Board of India (Listing Obligations and Disclosure Requirements) Regulations, 2015, regarding any financial disincentive(s) imposed by SEBI.

For more information, please refer the attachment.

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