SEBI has, by way of a circular dated January 10, 2019, on Committees at Market Infrastructure Institutions (as modified by SEBI circular dated February 15, 2019) (‘MII Circular’), prescribed detailed requirements in relation to the functions and composition of the committees required to be set up by stock exchanges, clearing corporations and depositories (collectively, ‘Market Infrastructure Institutions’ or ‘MIIs’) under the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018 and the SEBI (Depositories and Participants) Regulations, 2018, with a view to protect the interests of investors in the securities market and to regulate the securities market.

The MII Circular stipulates the establishment of: (i) functional committees (comprising of member selection committee, investor grievance redressal committee and nomination and remuneration committee); and (ii) oversight committees (comprising of standing committee on technology, advisory committee, regulatory oversight committee and risk management committee). The MII Circular also prescribes requirements in relation to composition, quorum and functions of each of the committees.