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Brokers want SEBI to ease criminal charge rules for directors
Stockbrokers are urging SEBI to revisit its strict rules that bar anyone with a criminal complaint or charge sheet from holding top positions.
The current policy, in place since 2021, forces quick removals and stake sales—even if there's no court verdict yet.
Stake sales, quick removals are tough for companies
Brokers feel these rules can unfairly disrupt companies before any actual conviction, making it tough to keep stable leadership and run things smoothly.
They say it's especially tricky when legal cases drag on or involve other countries.
SEBI is now talking with industry leaders, looking for a fairer balance between keeping markets honest and not tripping up businesses over unresolved allegations.