Market regulator SEBI on Monday constituted an ad hoc committee of experts to strengthen the governance norms of market infrastructure institutions (MIIs) — stock and commodity exchanges, clearing corporations, depositories and other KYC agencies. SEBI’s decision to set up the committee comes in the backdrop of NSE co-location scam.

The committee includes MD & CEOs of NSE, BSE, NSDL and CDSL, G. Mahalingam, former whole-time member, SEBI; JN Gupta, Managing Director of proxy firm SES; Aarti Nihalani, Partner, Oliver Wyman; Sandip Bhagat, Partner, S&R Associates and Uttam Bagri, former Chairman, BSE Brokers Forum.

The terms of the reference of the committee include making recommendations on measures for strengthening the role played by the governing board and committees of MIIs; reviewing the requirements related to appointment and role and responsibility of directors on the board and key managerial persons; developing effective metrics for monitoring various aspects of the functioning of MIIs and KMPs; enhancing accountability, transparency and reviewing the policy on safekeeping and sharing of information held by MIIs; revisiting the Code of Conduct and Code of Ethics for Directors of the Governing Board and KMPs; and any other measures that the committee may consider appropriate.