Subscribe To Our Free Newsletter |
Sebi mandates periodic PFMIs assessment for depositories, clearing corps
Markets regulator Sebi on Tuesday asked depositories and clearing corporations to carry out self-assessment with respect to Principles for Financial Market Infrastructures (PFMIs) on a periodic basis.
The issue of assessment of PFMI by Sebi-regulated FMIs (Financial Market Infrastructures) was discussed at the regulator's secondary market advisory committee, according to a circular.
Based on the recommendations of the committee, Sebi said it has been "decided that FMIs shall carry out self-assessment on a periodic basis against the PFMIs and disclose the same on their websites".
In this regard, the 24 principles for FMIs have been classified as "quantitative" and "qualitative".
FMIs regulated by Sebi are depositories and clearing corporations.
According to the circular, FMIs should be monitored and assessed against the PFMIs on annual basis by the Regulatory Oversight Committee (ROC) of the FMI.
ROC should submit a report to the governing board of the FMI and Sebi within 60 days