Market regulator Sebi Friday relaxed guidelines for the composition and functioning of the advisory committee at market infrastructure institutions such as stock exchanges, clearing corporations and depositories.
In a circular, Sebi said that the framework which prescribes that the "number of PIDs (public interest directors) shall not be less than the total of number of other members put together for the composition of the committees, quorum for the meeting of the committees and for validity of voting on a resolution in the meeting of the committee" will not be applicable to the advisory committee.
The move is aimed at enabling wider participation of members at market infrastructure institutions (MIIs), Sebi said.
The market watchdog last month issued directions regarding formation and composition of seven mandatory committees, including advisory committee at MIIs.
As the scope of work of some committees at MIIs were inter-related and overlapping, Sebi's board had earlier approved a proposal to rationalise them into seven specific panels.
The other members include shareholder directors, key management personnel and independent external persons.
In the advisory committee, trading members, clearing members and depository participants can provide their suggestions to the concerned market infrastructure institutions on non-regulatory and operational matters.
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