SEBI Proposes Major Overhaul for Stock Exchanges and Clearing Corporations

India's securities regulator has unveiled sweeping reforms aimed at modernizing the governance of stock exchanges and clearinghouses. The proposed changes include performance evaluations for public interest directors, streamlined timelines for compliance, and the elimination of outdated regulations.

A key proposal merges investor protection funds for equity and commodity derivatives segments into a single entity. This consolidation WOULD simplify operational requirements while maintaining adequate funding levels for commodity-focused exchanges.

The reforms also address financial structures, suggesting separate net worth calculations for clearing corporations and their parent exchanges. This reflects the evolving regulatory landscape where clearinghouses increasingly operate as distinct entities rather than mere subsidiaries.