SEBI Can Now Impose Fine On Market Infrastructure Institutions (MIIs) For Surveillance-Related Lapses

SEBI's circular targets surveillance-related deficiencies at market infrastructure institutions (MIIs) like stock exchanges and clearing corporations. Lapses include failure to implement surveillance decisions, adhere to timelines, and report activities promptly. \r

SEBI categorizes these lapses into three areas and imposes fines based on the MII's annual revenue and recurrence of deficiencies. Initial fines range from Rs 1 lakh to Rs 25 lakhs, with subsequent penalties escalating up to Rs 1 crore for MIIs with turnovers exceeding Rs 1000 crore. \r

MIIs have a chance to present their case before fines are imposed, which must be credited to the Investor Protection and Education Fund. MIIs must disclose fine details on their websites and reports. \r

Exemptions apply for lapses with widespread market impact or procedural errors deemed minor by SEBI.