SEBI Notifies Framework of ‘Financial Disincentives for Surveillance Related Lapses’ at MII
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- Last Updated on 7 June, 2024
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Circular No. SEBI/HO/ISD/ISD-PoD-1/P/CIR/2024/73, Dated 06.06.2024
To maintain effective surveillance and investor trust, the SEBI has notified a framework for Surveillance Related Lapses at Market Infrastructure Institutions (MIIs). This shall apply to surveillance-related lapses emanating from non-adherence to the requisite surveillance activities/decisions.
Further, the amount of financial disincentives as per the framework of financial disincentives for Surveillance Related Lapses (FDSRL) at MIIs, shall be determined based on the 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.
This circular shall come into effect on July 1, 2024, and the framework of FDSRL at MIIs shall apply for any surveillance-related lapse occurring on or after that date.
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