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CS Executive · Capital Market and Securities Laws · Securities and Exchange Board of India

A student preparing for CS Executive lists the composition of the SEBI Board under the SEBI Act, 1992. Which of the following correctly states the number of members nominated by the Reserve Bank?

The SEBI Board includes one member from amongst the officials of the Reserve Bank. The Reserve Bank nominates this member. The two-member category relates to Central Government officials dealing with Finance and administration of the Companies Act, not to the Reserve Bank.

  1. AOne member from amongst the officials of the Reserve BankCorrect
  2. BTwo members from amongst the officials of the Reserve Bank
  3. CThree members, of whom one is the Governor
  4. DNo member, as the Reserve Bank has no representation on the Board

Explanation

Section 4(1)(c) provides for one member from amongst the officials of the Reserve Bank, nominated by the Reserve Bank under section 4(4). Two members are drawn from the Ministry of Finance and company law administration, which is why the 'two members' option is wrong.

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