The Securities and Exchange Board of India (SEBI) on August 22, 2023, issued the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) (Third Amendment) Regulations, 2023 to further amend the e Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018.
The following has been amended namely: -
• Regulation 20 which states “Requirement and criteria of fit and proper” has been substituted:
“(1) (a) The ‘fit and proper person’ criteria shall apply to the applicant, recognised stock exchange, recognised clearing corporation, its shareholders, directors and key management personnel at all times.
(b) The recognised stock exchange or recognised clearing corporation shall ensure that all its shareholders, directors and key management personnel are fit and proper persons at all times.”
• In regulation 23 which states “Composition of the governing board” in sub-regulation (14) in clause (a), the words “comprise of”, wherever they occur, shall be substituted with the words “consist of”
• In Schedule II, in Part B which states about “Code of Ethics for directors and key management personnel of stock exchanges or clearing corporations” in Item I, in clause (i), in sub-clause (ii), the words “comprises of” shall be substituted with the words “consists of”
This shall come into force on August 22, 2023
[Notification No. SEBI/LAD-NRO/GN/2023/148]
