๐๐๐๐ ๐๐จ๐๐ซ๐ ๐๐ฑ๐ฉ๐๐ง๐ฌ๐ข๐จ๐ง: ๐๐จ๐๐ฌ ๐ญ๐ก๐ ๐๐๐๐ฎ๐ซ๐ข๐ญ๐ข๐๐ฌ ๐๐๐ซ๐ค๐๐ญ๐ฌ ๐๐จ๐๐ ๐๐ซ๐จ๐ฏ๐ข๐๐ ๐๐ฎ๐๐๐ข๐๐ข๐๐ง๐ญ ๐๐๐๐๐ ๐ฎ๐๐ซ๐๐ฌ ๐๐จ๐ซ ๐๐๐ ๐ฎ๐ฅ๐๐ญ๐จ๐ซ๐ฒ ๐๐ง๐๐๐ฉ๐๐ง๐๐๐ง๐๐?
Mint reports on the proposed expansion of the Securities and Exchange Board of India (SEBI) Board under the Securities Markets Code, 2025, and the questions surrounding the framework for appointment of its members.
The proposed Code seeks to increase SEBI‘s Board from nine to fifteen members, while also increasing the minimum number of whole-time members from three to five. The expansion comes against the backdrop of an increasingly complex securities market, including algorithmic trading, digital investing, cross-border capital flows and newer financial products.
The Code remains under parliamentary consideration following the report of the Standing Committee on Finance presented on 23 July 2026.
In this background, Mr. Sumit Agrawal, Senior Partner, Regstreet Law Advisors and former SEBI Officer, is quoted by Mint in its article titled “Sebi board expansion lacks key safeguard, experts say”, wherein he is of the view that:
“The bill leaves the appointment process to rules, not a statutory search-cum-selection committee, unlike CERC and CCI, whose committees sit in the parent Act. So, the expansion adds seats without adding independence of process.”
Mr. Sumit Agrawal further said that:
“The code’s language on expertise is similarly non-binding. Clause 4(4) lists broad qualificationsโlaw, finance, economics, technology, commodity markets, accountancy, and separately says the government ‘shall endeavour’ to appoint at least three of the 11 new members with securities market expertise. ‘Endeavour’ is aspirational, not binding. There’s no enforceable specialist quota.”
The discussion assumes significance as SEBI’s responsibilities continue to expand and the proposed larger Board is intended to bring additional capacity and specialised expertise into regulatory decision-making.
A copy of the article is attached. Readers can share their views with Regstreet Law Advisors at info@regstreetlaw.com.
