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

Ms. Iyer is considered for the post of SEBI Chairman. Her profile shows deep experience in accountancy and administration, but she has never dealt directly with securities market problems. Under section 4(5) of the SEBI Act, what is the position?

She can qualify. Section 4(5) requires ability, integrity and standing together with either capacity in securities market problems or special knowledge or experience in fields such as law, finance, economics, accountancy or administration. These are alternatives, so securities market experience is not mandatory.

  1. AShe can qualify if she is a person of ability, integrity and standing with special knowledge or experience of accountancy or administrationCorrect
  2. BShe is ineligible because direct securities market experience is compulsory
  3. CShe is eligible only if she has served as a Reserve Bank official
  4. DShe is eligible only if she holds a law degree

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 securities market experience is not compulsory.

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