Financial Market Infrastructures Must Periodically Self-assess Against PFMIs & Disclose Results on Their Websites

Circular No. SEBI/HO/MRD/MRD-PoD-3/P/CIR/2023/190, Dated 19.12.2023

Earlier, the issue of assessment of Principles of Financial Market Infrastructures (PFMIs) by SEBI-regulated FMIs was deliberated in the Secondary Market Advisory Committee of SEBI (SMAC). Based on the recommendations, SEBI has decided that FMIs shall carry out self-assessment on a periodic basis against the PFMIs and disclose the same on their websites. For this purpose, the 24 principles for FMIs have been classified as “quantitative” and “qualitative”.

The periodicity of self-assessment and disclosure by the FMIs for Quantitative shall be Quarterly (within 30 days from the end of the quarter – June, September, December and March) and for Qualitative, it shall be Annually (within 30 days from the end of the financial year).

Also, FMIs shall be monitored and assessed against the PFMIs on annual basis by the Regulatory Oversight Committee (ROC) of the FMI and the ROC shall submit a report to the governing board of the FMI and SEBI within 60 days from the end of the financial year.

The provisions of this Circular shall come into force from the quarter end December, 2023.

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