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

The Central Government wishes to fill positions on the SEBI Board. Who is appointed and who is merely nominated under section 4 of the SEBI Act?

The Central Government appoints the Chairman and the five clause (d) members. It nominates the two Ministry officials, while the Reserve Bank nominates its own official member. Hence the Reserve Bank representative is not appointed by the Central Government.

  1. AChairman and clause (d) members are appointed by the Central Government; the Ministry officials are nominated by the Central Government and the Reserve Bank official by the Reserve BankCorrect
  2. BAll members, including the Reserve Bank official, are appointed by the Central Government
  3. CThe Chairman is nominated by the Reserve Bank and the other members by the Central Government
  4. DClause (d) members are nominated by the Reserve Bank and the Ministry officials appointed by SEBI

Explanation

Section 4(4) says the Chairman and clause (a) and (d) members are appointed by the Central Government. Clause (b) members are nominated by the Central Government and the clause (c) member by the Reserve Bank. So the Reserve Bank official is not appointed by the Central Government.

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