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

Meera, a chartered accountant with deep experience in the securities market, is being considered for a whole-time member post under Section 4(1)(d). Which statement about the qualification standard in Section 4(5) is correct?

Members under clauses (a) and (d) must be persons of ability, integrity and standing, with either demonstrated capacity in securities market problems or special knowledge or experience in law, finance, economics, accountancy, administration or another discipline the Central Government finds useful. Market experience alone is not mandatory.

  1. AOnly persons who have previously served as judges of a High Court are eligible
  2. BOnly serving officials of the Reserve Bank may be considered
  3. CShe must be a person of ability, integrity and standing with capacity in dealing with securities market problems or special knowledge or experience of fields such as law, finance, economics, accountancy or administrationCorrect
  4. DPrior experience in the securities market is mandatory and special knowledge of accountancy alone is not sufficient

Explanation

Section 4(5) requires persons of ability, integrity and standing who have shown capacity in dealing with securities market problems or have special knowledge or experience of law, finance, economics, accountancy, administration or another useful discipline. The two limbs are alternatives, so the last option is wrong.

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