SEBI to relax director rules for exchanges clearing corporations depositories
SEBI is looking to relax its rules so more people can serve as directors on the boards of stock exchanges, clearing corporations, and depositories.
Right now, if you are linked to a stockbroker or market intermediary, you're blocked from joining.
SEBI feels this rule is too strict and keeps out otherwise suitable candidates, especially in big business groups where companies operate independently.
SEBI proposes allowing widely held directors
The new proposal would let directors from "widely held" companies (where no private shareholder, either alone or together with related parties, owns or controls 10% or more of the company) join these boards, even if another group company is a broker or clearing member.
Public-sector shareholders are not counted in that 10%.
SEBI wants feedback on these changes by September 30, hoping the move will attract experienced professionals and help market institutions bring more experienced professionals onto their boards.