Capping tenure of stock exchanges' CEOs

Regulator Sebi is considering capping tenure of stock exchange CEOs to maximum two terms of five years each, as part of an overhaul of regulations for ownership and governance norms for market infrastructure institutions. Besides, the watchdog is planning to bring in new ownership norms for setting up of stock exchanges as it feels that entry of new players can benefit investors with better product choices and effective cost structures, a senior official said.

At its next board meeting scheduled for June 21, Sebi would propose coming out with a consultation paper for various regulatory and procedural requirements for setting up of MIIs, including stock exchanges. Sebi is also looking to harmonise the shareholding limit across stock exchanges, clearing corporations and depositories, according to a senior official.