SEBI proposes alterations to ‘Fit & Proper’ framework

SEBI proposes alterations to ‘Fit & Proper’ framework

The Securities and Exchange Board of India (SEBI) has introduced changes to its ‘Fit & Proper’ framework.

The market regulator has stated that an FIR or chargesheet alone would not lead to automatic disqualification. Instead, henceforth, each case would be assessed individually.

SEBI added that in the future, intermediaries must inform the regulator within 15 days of such developments.

Moreover, before declaring any entity not ‘fit and proper’, an opportunity for a proper hearing will be provided to the entity.