SEBI narrows fit and proper disqualifications for market intermediaries
NewsBytes | April 17, 2026 11:39 PM CST
SEBI introduces procedural safeguards and timelines
Winding up cases won't count against you unless there's a final order.
If something happens that could lead to disqualification, intermediaries have 15 working days to let SEBI know.
There's also now a right to a fair hearing before someone is labeled "not fit and proper."
Plus, the default five-year ban is gone (unless specifically mentioned), and the cooling-off period after getting a show-cause notice is down to six months.
If key individuals in your company are found unfit, they've got 30 working days to replace them or have such persons relinquish voting rights and divest holdings within six months.
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