SEBI proposes an automatic approval route for market infrastructure institutions (MIIs) to conduct related permitted activities, subject to financial limits and governance safeguards.
SEBI Proposes Streamlined Approval for MII Activities
SEBI has proposed an automatic route for stock exchanges and depositories to undertake related activities under the permissible business scope, eliminating the need for prior regulatory approvals. The proposal, part of broader market efficiency reforms, applies to activities already listed under MII authorization but subject to prescribed financial thresholds and risk containment measures.
The automatic route will be available only if the proposed activity does not involve third-party partnerships, does not exceed specified capital allocation limits, and complies with board-approved risk management frameworks. SEBI will retain oversight through post-facto disclosures and audit reporting.
Practical Implication: This will accelerate innovation and service rollout by MIIs. However, entities must ensure robust internal governance and compliance systems to avoid breaches that could trigger retrospective disapproval or penalties.
Citations
- SEBI Discussion Paper, October 2026