Outsourcing governance for exchanges and clearing corporations: board approved policy, retained legal accountability, and controls for core functions. SEBI directs stock exchanges and clearing corporations to adopt a Board approved outsourcing policy defining material outsourcing, identifying non outsourcable core and critical activities, and permitting limited outsourcing to specialists or group entities only with clear demarcation and retained control. The policy must require documented due diligence, written contracts allocating responsibilities, monitoring of provider performance, business continuity and security measures, sub contracting safeguards, regulator access and audit rights, and periodic review of material outsourcing risks.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Outsourcing governance for exchanges and clearing corporations: board approved policy, retained legal accountability, and controls for core functions.
SEBI directs stock exchanges and clearing corporations to adopt a Board approved outsourcing policy defining material outsourcing, identifying non outsourcable core and critical activities, and permitting limited outsourcing to specialists or group entities only with clear demarcation and retained control. The policy must require documented due diligence, written contracts allocating responsibilities, monitoring of provider performance, business continuity and security measures, sub contracting safeguards, regulator access and audit rights, and periodic review of material outsourcing risks.
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