On July 11, 2025, the International Financial Services Centres Authority (“IFSCA”) has released a Consultation Paper seeking public comments on proposed amendments related to the appointment of Public Interest Directors (“PIDs”) on the Governing Boards of Market Infrastructure Institutions (“MIIs”) operating within the International Financial Services Centre (“Consultation Paper”)[1].
I. Key Objectives
The Consultation Paper aims to enhance transparency, governance, and accountability in the appointment and functioning of PIDs on MII boards. The proposals focus on:
- Defining the required skill sets for Board members.
- Outlining a transparent appointment process for PIDs.
- Mandating periodic knowledge upgradation for PIDs to stay current with regulatory and market developments.
II. Key Proposals
- Skill Set Requirements: Identification of specific competencies and qualifications required for Board members, including expertise in areas like law, finance, technology, and risk management.
- PID Appointment Process: Introduction of a structured and transparent process for shortlisting and appointing PIDs, ensuring independence and alignment with public interest.
- Knowledge Upgradation: Compulsory training and development modules for PIDs to ensure ongoing professional competency and awareness of evolving regulatory frameworks.
III. Call for Public Comments
IFSCA has invited stakeholders to provide inputs on the proposed circular in Annexure-I of the Consultation Paper and submit comments latest by August 02, 2025.
[1]https://ifsca.gov.in/CommonDirect/GetFileView?id=21626bde60601ef44a0ed0220127d81b&fileName=Consultation_Paper_for_appointment_of_Public_Interest_Directors_on_the_Governing_Board_of_Market_Infrastructure_Institution_20250711_0502.pdf