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Corporate Laws Central Ministry of Finance Securities Contracts (Regulation) Act, 1956

Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) (Third Amendment) Regulations, 2025

30-Apr-2025 | No. SEBI/LAD-NRO/GN/2025/246

SEBI has issued the notification regarding Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) (Third Amendment) Regulations, 2025 effective from 29th July, 2025.

This notification has been issued in reference to the Regulation 24 of Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018 which is regarding the Conditions of appointment of directors.

By virtue of this notification, SEBI has specified that in Regulation 24(1) of Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018, which is regarding the Appointment and reappointment of all non-independent directors on the governing board of every recognized stock exchange or recognized clearing corporation requires the prior approval of the Board, the proviso has been inserted regarding the appointment of non-independent director on the governing board of a recognized stock exchangeor a recognized clearing corporation only after a cooling-off period as may be specified by the governing board of such recognized stock exchange or recognized clearing corporation.

In addition to that, in Regulation 24(3) which is regarding the appointment of public interest director, the proviso regarding the appointment of public interest director with the prior approval of the Board for a further term of three years in another recognized stock exchange or a recognized clearing corporation or a depository, only after a cooling-off period as specified and in second proviso, it is specified that cooling-off period would be applicable only in case of appointment as a public interest director in a competing recognized stock exchange and after the provisos, the explanation regarding the applicability of expression competing recognised stock exchange or recognised clearing corporation has been specified.

Please refer to the attached document for more information.

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