SEBI, on October 3, 2018, has issued the Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2018 (‘New SECC Regulations’), effectively replacing the erstwhile Securities Contracts (Regulation) (Stock Exchanges and Clearing Corporations) Regulations, 2012 and the circulars issued thereunder, to regulate the recognition, ownership and governance in stock exchanges and clearing corporations. Some of key features of the New SECC Regulations are:

(i)      For valid quorum at a meeting of the board of stock exchanges and clearing corporations, the number of ‘public interest directors’ should not be less than the number of ‘shareholder directors’ at such meeting. The managing director is to be compulsorily categorized as a shareholder director.

(ii)     The voting on board resolutions shall be valid only when the number of public interest directors who have cast their vote on such resolution is more than the number of shareholder directors who have cast their vote on such resolution.

(iii)    The directors and key management personnel should be ‘fit and proper’ persons at all times, as per the criteria have been specified in the regulations as well as the disqualifications in this regard.