IFSCA Proposes Skill-Based Criteria and Process for Appointment of Public Interest Directors (PIDs) in Market Infrastructure Institution (MIIs)
The International Financial Services Centres Authority (IFSCA) released a consultation paper dated July 11, 2025, proposing a structured and skill-based framework for the appointment and evaluation of Public Interest Directors (PIDs) on the Governing Boards of Market Infrastructure Institutions (MIIs) in IFSC. The initiative aims to enhance corporate governance and ensure that PIDs possess the right blend of expertise, independence, and regulatory knowledge.
Context & Rationale
MIIs in IFSC serve a dual role of commercial and regulatory, which necessitates robust governance. While the IFSCA (Market Infrastructure Institutions) Regulations, 2021 mandate the inclusion of PIDs and require that the Chairperson of the Board be a PID, specific qualification and skill-set criteria were not previously defined.
Proposed Reforms
IFSCA proposes to mandate that:
1.Each MII Governing Board must have at least one PID each with dominant expertise in:
•Technology
•Legal and Regulatory
•Finance and Accounts
•Capital Markets
2.The Nomination and Remuneration Committee (NRC) will be responsible for identifying and evaluating candidates using skill-based metrics covering personal attributes, competencies, domain expertise, board alignment, and synergy.
3.A structured appointment process will include NRC shortlisting, Governing Board assessment, and final approval by IFSCA. In certain cases, IFSCA may appoint a Nominee Director with PID status.
4.Annual training will be mandatory for all PIDs to ensure knowledge of evolving financial, technological, and regulatory trends.
Performance Review & Reappointment
PIDs will be appointed for a 3-year term, extendable based on performance review. Reappointment applications must consider Board diversity and include data on committee participation and contribution.
Public Feedback Invited
IFSCA seeks stakeholder comments on the appointment process, evaluation framework, skill-set requirements, and training mandates.
Submission Deadline: Comments to be sent by August 2, 2025.
Refer to the Consultation Paper here.
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