29 April 2010

Governance in Exchanges - long way

SEBI has put out a discussion paper with many questions about the governance of exchanges, clearing entities and depositories. The issue of governance of exchanges, clearing entities and depositories has been an issue which has been poorly understood, even by people in the securities business - mainly because it doesn't directly effect people in the industry except in invisible ways. Unfortunately, the invisible ways actually have a power role in how these markets are run, how efficient they are and how accountable they are.

I hope to send a detailed set of comments to the committee which has been mandated to look into these issues - headed by the highly respected former governor of RBI, Dr. Bimal Jalan. I have little doubt that the committee will give sensible findings - but do wish that they go a little deeper than most committees do in their research of the issues, given how difficult they are.

I would be very happy if any of the viewers of this blog have comments which I can add to my comments. Please leave your comments or email me with views.

The document of SEBI seeking public comment is available here "Review of ownership and governance of market infrastructure institutions".

1 comment:

crackwise said...

existing ownership structure of clearing corporations needs to be examined. Do they pose systemic risk and to the functioning of stock exchanges