Section 4 in The Securities and Exchange Board of India Act, 1992
Title: Management of the Board
(1) The Board shall consist of the following members, namely:--
(a) a Chairman;
(b) two members from amongst the officials of the 1[Ministry] of the Central Government dealing with Finance 2[and administration of the Companies Act, 1956 (1 of 1956)];
(c) one member from amongst the officials of 3[the Reserve Bank];
4[(d) five other members of whom at least three shall be the whole-time members,]\to be appointed by the Central Government.
(2) The general superintendence, direction and management of the affairs of the Board shall vest in a Board of members, which may exercise all powers and do all acts and things which may be exercised or done by the Board.
(3) Save as otherwise determined by regulations, the Chairmen shall also have powers of general superintendence and direction of the affairs of the Board and may also exercise all powers and do all acts and things which may be exercised or done by that Board.
(4) The Chairman and members referred to in clauses (a) and (d) of sub-section (1) shall be appointed by the Central Government and the members referred to in clauses (b) and (c) of that sub-section shall be nominated by the Central Government and the 5[Reserve Bank] respectively.
(5) The Chairman and the other members referred to in clauses (a) and (d) of sub-section (1) shall be persons of ability, integrity and standing who have shown capacity in dealing with problems relating to securities market or have special knowledge or experience of law, finance, economics, accountancy, administration or in any other discipline which, in the opinion of the Central Government, shall be useful to the Board.
1. Subs. by Act 59 of 2002, s. 3, for "Ministries" (w.e.f. 29-10-2002).
2. Subs. by s. 3, ibid., for "and Law" (w.e.f. 29-10-2002).
3. Subs. by s. 3, ibid., for "the Reserve Bank of India constituted under section 3 of the Reserve Bank of India Act, 1934 (2 of 1934)" (w.e.f. 29-10-2002).
4. Subs. by s. 3, ibid., for clause (d) (w.e.f. 29-10-2002).
5. Subs. by s. 3, ibid., for "Reserve Bank of India" (w.e.f. 29-10-2002).
Title: Term of office and conditions of service of Chairman and members of the Board
(1) The term of office and other conditions of service of the Chairman and the members referred to in clause (d) of sub-section (1) of section 4 shall be such as may be prescribed.
(2) Notwithstanding anything contained in sub-section (1), the Central Government shall have the right to terminate the services of the Chairman or a member appointed under clause (d) of sub-section (1) of section 4, at any time before the expiry of the period prescribed under sub-section (1), by giving him notice of not less than three months in writing or three months salary and allowances in lieu thereof, and the Chairman or a member, as the case may be, shall also have the right to relinquish his office, at any time before the expiry of the period prescribed under sub-section (1), by giving to the Central Government notice of not less than three months in writing.
Title: Removal of member from office
1*** The Central Government shall remove a member from office if he
(a) is, or at any time has been, adjudicated as insolvent;
(b) is of unsound mind and stands so declared by a competent court;
(c) has been convicted of an offence which, in the opinion of the Central Government, involves a moral turpitude;
(e) has, in the opinion of the Central Government, so abused his position as to render his continuation in office detrimental to the public interest:
Provided that no member shall be removed under this clause unless he has been given a reasonable opportunity of being heard in the matter.
1. The brackets and figure "(1)" omitted by Act 9 of 1995, s. 3 (w.e.f. 25-1-1995).
2. Clause (d) omitted by Act 9 of 1995, s. 3 (w.e.f. 25-1-1995).
(1) The Board shall meet at such times and places, and shall observe such rules of procedure in regard to the transaction of business at its meetings (including quorum at such meetings) as may be provided by regulation.
(2) The Chairman or, if for any reason, he is unable to attend a meeting of the Board, any other member chosen by the members present from amongst themselves at the meeting shall preside at the meeting.
(3) All questions which come up before any meeting of the Board shall be decided by a majority votes of the members present and voting, and, in the event of an equality of votes, the Chairman, or in his absence, the person presiding, shall have a second or casting vote.
Title: Member not to participate in meetings in certain cases
1[7A. Member not to participate in meetings in certain cases.---Any member, who is a director of a company and who as such director has any direct or indirect pecuniary interest in any matter coming up for consideration at a meeting of the Board, shall, as soon as possible after relevant circumstances have come to his knowledge, disclose the nature of his interest at such meeting and such disclosure shall be recorded in the proceedings of the Board, and the member shall not take any part in any deliberation or decision of the Board with respect to that matter.]
1. Ins. by s. 4, ibid. (w.e.f. 25-1-1995).