Archive · 23 Sep 2026
SEBI Board Set to Expand, Experts Seek Binding Appointment Safeguards
The SEBI board, which oversees India’s securities market, is expected to become larger.
Right now, the central government makes the appointments.
A committee studies candidates and recommends people for the jobs.
However, the government does not have to follow those recommendations.
A parliamentary committee has said the recommendations should become mandatory, or a similar formal process should be used.
Experts also say the law’s rules about qualifications are too weak.
The law asks the government to try to appoint at least three members with securities-market experience.
They want this requirement to be enforceable rather than just an aspiration.
The central government appoints the SEBI chairperson and whole-time members under the current framework.
Member selections are recommended by the Financial Sector Regulatory Appointments Search Committee, but its recommendations are not binding.
The committee is headed by the cabinet secretary and includes senior government officials, the SEBI chairperson, and three government-nominated external experts.
The SEBI board also includes two central government representatives and one Reserve Bank of India member.
Experts say the law should mandate committee-based appointments and require securities-market expertise among at least three of 11 new members.
- Who
- The central government, the Financial Sector Regulatory Appointments Search Committee, SEBI, and experts discussing the board’s composition.
- What
- SEBI’s board is set to grow, while experts are calling for binding appointment procedures and enforceable securities-market expertise requirements.
- When
- The articles do not specify a date.
- Where
- India.
- Why
- To make appointments more transparent, merit-based, and consistent, and to ensure specialist securities-market expertise on the board.
Binding Safeguards
Existing Government Discretion
Appointment recommendations
Binding Safeguards
A parliamentary standing committee recommended that appointments be made on the Financial Sector Regulatory Appointments Search Committee’s recommendations, or through an equivalent institutional mechanism.
Existing Government Discretion
Under the current framework, the central government retains the final authority because the committee’s recommendations are not binding.
Securities-market expertise
Binding Safeguards
Experts argue that the law should require specialist representation, including securities-market expertise among at least three of the 11 new members.
Existing Government Discretion
The current language only says the government shall endeavour to make these appointments, leaving the requirement non-binding.
- Appointing authority
- The central government appoints the SEBI chairperson and whole-time members.
- Recommendation body
- The Financial Sector Regulatory Appointments Search Committee recommends candidates.
- Status of recommendations
- The committee’s recommendations are not binding on the government.
- Committee leadership
- The cabinet secretary heads the Financial Sector Regulatory Appointments Search Committee.
- Current board representation
- The board includes two central government representatives and one Reserve Bank of India member.
- Proposed expertise requirement
- The law says the government should endeavour to appoint at least three of 11 new members with securities-market expertise.
- Key criticism
- Experts say “endeavour” is aspirational and does not create an enforceable specialist quota.