Regulation 23 - Composition of the governing board - SECURITIES CONTRACTS (REGULATION) (STOCK EXCHANGES AND CLEARING CORPORATIONS) REGULATIONS, 2012

CHAPTER V GOVERNANCE OF STOCK EXCHANGES AND CLEARING CORPORATIONS Composition of the governing board. 23. (1) The governing board of every recognised stock exchange and recognised clearing corporation shall include: (a) shareholder directors; (b) public interest directors; and, (c) managing director. (2) Subject to prior approval of the Board, the chairperson shall be elected by the governing board from amongst the public interest directors. (3) The number of public interest directors shall not be lesser than the number of shareholder directors in a recognised stock exchange. (4) The number of public interest directors of a recognised clearing corporation shall not be less than two-third, and shareholder directors shall not exceed one-third, of its governing board strength. (5) The managing director shall be an ex-officio director on the governing board and shall not be included in either the category of public interest directors or shareholder directors. (6) Any employee of a recognised stock exchange or recognised clearing corporation may be appointed on the governing board in addition to the managing director, and such director shall be deemed to be a shareholder director. (7) No trading member or clearing member, or their associates and agents, shall be on the governing board of any recognised stock exchange or recognised clearing corporation. (8) Atleast one public interest director shall be present in the meetings of the governing board to constitute the quorum. (9) No foreign 1 [ portfolio ] investor shall have any representation in the governing board of a recognised stock exchange or a recognised clearing corporation. (10) Every recognised stock exchange shall ensure compliance with the provisions of this regulation within three months from the date of commencement of these regulations. ********* Notes 1. Substituted vide Notification No. SEBI/LAD/NRO/GN/2015-16/037 dated 07-03-2016 before it was read as institutional