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

Mr. Rao is appointed under clause (d) of section 4(1) of the SEBI Act as a member of the Board. Which statement about the composition of that category is correct?

Clause (d) of section 4(1) provides for five other members, of whom at least three must be whole-time members, all appointed by the Central Government. The Act does not require all five to be whole-time, so that option misstates the law.

  1. AFive other members, of whom at least three are whole-time membersCorrect
  2. BFive other members, all of whom must be whole-time members
  3. CThree other members, of whom at least two are whole-time members
  4. DTwo other members, both of whom are part-time members

Explanation

Section 4(1)(d) provides for five other members of whom at least three shall be whole-time members. They are appointed by the Central Government. Requiring all five to be whole-time overstates the rule.

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