TaxTMI 
TaxTMI 
Parameters for Performance Evaluation of Market Infrastructure Institutions
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....th respect to evaluations to be done by the external agency, it was felt that basic minimum standards and principles should be developed along with weightages. Accordingly, the matter was discussed at the Industry Standards Forum (ISF) of MIIs where the broad criteria, the weightage for each criterion, sub-parameters under each criterion, etc. were deliberated. For each sub-parameter, sample Key Performance Indicators (KPIs), both quantitative and qualitative in nature, were identified by SEBI in consultation with the ISF. 3. Based on the deliberations at the ISF of MIIs and subsequent internal deliberations, the broad framework with basic minimum criteria for independent external evaluation of performance of MIIs has been approved by the Board in its meeting held on June 27, 2024. The minimum criteria for the independent external evaluation of performance of MIIs and their weightages are as under: S.N. Criteria Weightage (i) Resilience in technology and processes of MII, in delivery of its core functions. 40% (ii) Investor Education and Protection. 17% (iii) Efficient discharge of Regulatory role by MII. 15% (iv)&nb....
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....nd of the 3rd FY to be evaluated. 8. Performance Evaluation Metrics for KMPs including MD 8.1. Clause (k) of Part A under Schedule-II of the SECC Regulations, 2018 on Code of Conduct for Stock Exchanges and Clearing Corporations, inter alia, state that "A recognised stock exchange and a recognised clearing corporation shall: .... (k) Segregate roles and responsibilities of key management personnel within the stock exchange and clearing corporation including i. Clearly mapping legal and regulatory duties to the concerned position ii. Defining delegation of powers to each position iii. Assigning regulatory, risk management and compliance aspects to business and support teams" 8.2. Further Clause u(iv) of Part B under Schedule - II of the SECC Regulations, 2018 on Code of Conduct for Governing Board, inter alia, states that "Governing Board shall ..... u. endeavour that the stock exchange and clearing corporation put in place key elements related to culture such as ...... iv. performance management mechanisms which take into account adherence to culture, conduct and beh....
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....p; to protect the interests of investors in securities and to promote the development of, and to regulate the securities market. 12. This circular is available on SEBI website at www.sebi.gov.in. Yours faithfully, Hruda Ranjan Sahoo Deputy General Manager Tel. No. 022-26449586 Email: [email protected] ============= Document 1Criteria 1. Resilience in technology and processes of MII, in delivery of its core functions (40%) Sub-Parameter Nature of Sample KPIs Parameters (I) Operational and process resilience (20%) Quantitative Parameters (50%) (II) Cyber Security (20%) Qualitative Parameters (50%) Annexure-A: Broad Framework for evaluation of MIIs by External Agency Rating Metric Scale Rating Metric Weightage (A) Metric Rating by Evaluator (B) Metric Score (A*B) Sub-Parameter score (C) Sub-Parameter Weightage (D) Rationale for assigning Final Score the rating by the Evaluator Observations Timely resolution of high-risk observations from findings of SEBI System Audit Technology resilience index score Pending beyond implementation date: 1) No pendency - 4 2) Pendency-1 50% 0 If the technology re....
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....ied through the Audit of outsourced agencs/vendors, their activites, operations, systems, process, etc. Parameters considered for formulating outsourcing policy The rating score shall be based on the judgement of the evaluator 40% 0 0 20% 0 20% 0 40% 0 Criteria Nature of Sub-Parameter Sample KPIs Parameters Annexure-A: Broad Framework for evaluation of MIIs by External Agency Rating Metric Scale Rating Metric Weightage (A) Metric Rating by Evaluator (B) Metric Score (A*B) Sub-Parameter score (C) Sub-Parameter Weightage (D) Rationale for assigning Final Score the rating by the Evaluator Observations 1) Reviewed half-yearly and enahnced the limit, if found inadequate - 4 2) Not reviewed half-yearly - 1 25% 0 2. Investor Education (i)Investor Protection and Protection (17%) (70%) Quantative Review of the IPF corpus as per Parameters (50%) regulatory guidelines and enhancement of the same, if found to be inadequate. Review of IPF claim limits as per regulatory guidelines and progressively increase the amount of compensation available against a single claim from an investor 1) Reviewed once in three year and enhanced compensation....
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....ies. Policies in place. Ability to fix accountability -Analysis of accountability fixed during the evaluation period. (ii) Efficacy of the Governing Board in promoting a culture which encourages proactive, meaningful and constructive deliberations on current and future issues concerning the MII or the securities market. (20%) Qualitative Factors (100%) Governance practices and integrity issues concerning the MII Whether MII has adopted any Integrity pact and whether the vendors are bound by the same? Anti-bribery and Anti-corruption (ABAC) policy, if any. And review of the same on periodic basis. 6.Adequacy of (i) Adequacy of resources allocated for resources allocated for performing functions performing functions under Vertical 1 and 2 under Vertical 1 and 2 (5%) Annexure-A: Broad Framework for evaluation of MIIs by External Agency Rating Metric Scale Rating Metric Weightage (A) Metric Rating by Evaluator Metric Score Sub-Parameter score (C) Sub-Parameter Weightage (D) Rationale for assigning (A*B) Final Score the rating by the Evaluator Observations (B) 10% 10% 10% 10% 10% The rating score shall be based on the judgement of....