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Listen to this article in summarized format The Securities and Exchange Board of India (Sebi) said the current rules have made it difficult for MIIs to find suitable candidates, particularly for public interest director positions. Sebi proposed changes to the existing rules governing the appointment of directors to the boards of stock exchanges, clearing corporations and depositories. At present, trading members, clearing members, depository participants and their associates are barred from having representation on the governing boards of MIIs. A person who is a director in an entity that is itself a trading or clearing member, or has such associates, can also be deemed to be a member and become ineligible. The regulator said these provisions can have a restrictive impact on large conglomerates and holding companies, where different subsidiaries operate independently and maintain Chinese walls. "Thus, the director of a company in a conglomerate should not become ineligible as a director in an MII, just because the conglomerate or the holding company has a separate subsidiary in the business of trading member/ clearing member/ depository participant. Therefore, there is a need to review this regulation to encourage flow of expertise/talent into the MIIs," Sebi said in a discussion paper on Wednesday. The regulator has proposed extending an existing exemption to directors of companies with well-diversified shareholding, even where their associates are trading members, clearing members or depository participants. The regulator has suggested defining well-diversified shareholding as a structure where no shareholder, other than public sector shareholders, individually or together with persons acting in concert, directly or indirectly holds 10% or more stake, control or voting rights. (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
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