Section 22 in Central Electricity Regulatory Commission (Power Market) Regulations, 2010
22. Ownership and Governance structure of Power Exchange.
- (i) There shall be a clear demarcation between ownership, management / operations and participation in trading.(ii)Independent Directors - At least one third of the members of the Board or a minimum of two directors, whichever is higher, shall be independent directors selected from a panel constituted by the Power Exchange and approved by the Commission out of which one person will have professional qualification and experience in finance. The panel shall be constituted of persons of repute and integrity from academics, professionals, industry representatives, public figures none of whom should have any interest in any Member of Power Exchange and any fiduciary relationship with any shareholder of Power Exchange.(iii)The total strength of the Board shall be in accordance with the provisions of the Companies Act 1956.(iv)Not more than one fourth of the Board of directors shall represent Members of Power Exchange.(v)The Board shall appoint a CEO cum Managing Director who shall be solely responsible for running the day to day operations of the Power Exchange. The Managing Director shall be a professional with adequate qualification and at least 10 years of experience in the relevant field.(vi)The Managing Director, the Chief Executive or the Director in charge of day-today operations or any employee, of the power Exchange shall not be directly or indirectly associated with any Member of the Power Exchange or client or participant of the Power Exchange or with a holding or subsidiary company thereof.(vii)Services of any consultant or advisor can be availed of by Power Exchange as long as he is not dealing with price sensitive information of the Power Exchange and there is no conflict of interest between assignments undertaken for other persons served by the consultant or advisor and the Power Exchange(viii)The Managing Director shall ensure that the individual bids of members of the Power Exchange is not shared with the board of directors.(ix)The Power Exchanges which has been granted approval or in principle approval by the Commission on or prior to the date of notification of these regulations, shall within a period not exceeding one year from the date of notification of these regulations , ensure that the governance structure as specified in this Regulation 22 is adhered to and complied with
