Sebi mulls overhaul of ‘fit and proper person’ framework governing market intermediaries

Sebi has proposed a major revamp of its ‘fit and proper person’ framework to enhance clarity, fairness and reduce regulatory uncertainty. Key changes include codifying the right to a hearing, narrowing disqualifications, easing ineligibility norms, redefining group-entity impact, and limiting voting rights instead of forcing divestment by persons in control.