Market Infrastructure Institutions (MIIs) are a concept and a type of institution that form the backbone of India's securities market, acting as critical financial infrastructure akin to public utilities. The principal MIIs in India are Stock Exchanges, Clearing Corporations (or Clearing Houses), and Depositories. The concept gained formal recognition following the report of a panel set up under the chairmanship of former RBI Governor Bimal Jalan in 2010, which defined MIIs as fundamental facilities and systems serving the capital market. The problem MIIs solve is ensuring the smooth functioning, integrity, and efficiency of the securities market by enabling trading, clearing, settlement, and depository services, which became necessary after the liberalisation of the Indian economy in 1991.
MIIs are regulated by the Securities and Exchange Board of India (SEBI) under the Securities Contracts (Regulation) Act, 1956, and the Depositories Act, 1996. Their operation is governed by specific regulations, including the SEBI (Stock Exchanges and Clearing Corporations) Regulations, 2018 and the SEBI (Depositories and Participants) Regulations, 2018. MIIs connect to the broader financial ecosystem, including institutions like the National Stock Exchange (NSE), established in 1992, and the National Securities Depository Limited (NSDL), established in 1996.
The governance of MIIs has recently been strengthened through amendments to the SECC Regulations, 2018 and the Depositories Regulations, 2018, which were notified on November 21, 2025, and came into effect on December 20, 2025. These amendments, along with a circular issued by SEBI on December 12, 2025, introduced comprehensive governance norms to enhance accountability. A key mechanism is the mandatory appointment of two Executive Directors (EDs) to the Governing Board, one for Critical Operations (Vertical 1) and another for Regulatory, Compliance, Risk Management, and Investor Grievances (Vertical 2). These EDs are selected through an open advertisement process and require SEBI's approval. The new provisions also mandate that the EDs report to the Governing Board quarterly and may escalate critical matters directly to SEBI.