India's markets regulator on Wednesday proposed easing rules on who can serve on the boards of stock exchanges and other key market institutions, saying current restrictions make it harder to find suitable candidates.
Under existing rules, people linked to stock brokers and other market intermediaries are generally barred from serving on the boards of stock exchanges, clearing corporations and depositories.
The Securities and Exchange Board of India said that the rules can exclude candidates even when their links to a market intermediary are remote, particularly at large business groups with multiple subsidiaries operating independently.
The regulator proposed allowing directors of widely held companies to serve on these boards even if another company in their group is a broker, clearing member or depository participant.
SEBI proposed defining such widely held companies as those where no private shareholder, alone or with related parties, owns or controls 10% or more. Public-sector shareholders would be exempt from the threshold.
The change could help bring more experienced professionals onto the boards of market institutions, the regulator said.
Separately, SEBI proposed clearer qualification and experience requirements for senior officials overseeing technology, cybersecurity, compliance and risk, and said vacancies in these roles should be filled within three months.
The regulator also sought views on appointing deputies for these key roles to ensure continuity, and has invited public comments on the proposals by September 30.
