SEBI (Employees’ Service) (Amendment) Regulations, 2024

Introduction: The Securities and Exchange Board of India (SEBI) plays a crucial role in regulating the securities market and ensuring investor protection. In line with its mandate, SEBI periodically revises its regulations to adapt to changing market dynamics and enhance operational efficiency. The recent amendment to the SEBI Employees’ Service Regulations, 2024, introduces significant changes aimed at streamlining the recruitment and promotion processes within the organization.

Detailed Analysis:

The latest amendments to the SEBI Employees’ Service Regulations, 2024, focus on enhancing transparency and efficiency in recruitment and promotion procedures. One notable change is the restructuring of the selection committee for the appointment of Executive Directors. The competent authority now constitutes a search-cum-selection committee, comprising both internal members and external experts. This aims to ensure a comprehensive assessment of candidates and bring in diverse perspectives during the selection process.

Furthermore, the regulations specify the composition of the selection committee for promotions and deputation/contract appointments. For promotions, the committee includes members of the Board and external experts nominated by the Chairman. Similarly, for deputation/contract appointments, the search-cum-selection committee comprises members of the Board and external experts. These committees play a crucial role in evaluating candidates’ suitability for key positions within SEBI, ensuring competence and alignment with organizational objectives.

The amendments also emphasize the Board’s role in approving appointments to the position of Executive Director. Before issuing appointment offers, the competent authority must seek approval from the Board, enhancing accountability and oversight in senior-level appointments.

Overall, the amendments to the SEBI Employees’ Service Regulations, 2024, reflect SEBI’s commitment to fostering a merit-based and transparent work environment. By establishing clear guidelines for recruitment and promotion, SEBI aims to attract top talent and uphold the highest standards of professionalism within the organization.

Conclusion: The Securities and Exchange Board of India (SEBI) continues to evolve its regulatory framework to meet the dynamic needs of the securities market. The recent amendments to the SEBI Employees’ Service Regulations, 2024, underscore SEBI’s commitment to promoting fairness, efficiency, and accountability in its operations. By introducing reforms in recruitment and promotion processes, SEBI aims to strengthen its workforce and uphold its mandate of safeguarding investors’ interests. These amendments mark a significant step towards enhancing governance and transparency within SEBI, ensuring its continued effectiveness as the apex regulatory body in the Indian securities market.

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SECURITIES AND EXCHANGE BOARD OF INDIA
NOTIFICATION
Mumbai, the 7th February, 2024

SECURITIES AND EXCHANGE BOARD OF INDIA (EMPLOYEES’ SERVICE)
(AMENDMENT) REGULATIONS, 2024

No. SEBI/LAD-N RO/GN/2024/165 – In exercise of the powers conferred by section 30 of the Securities and Exchange Board of India Act, 1992 (15 of 1992), the Board hereby makes the following regulations to further amend the Securities and Exchange Board of India (Employees’ Service) Regulations, 2001, namely: –

1. These regulations may be called the Securities and Exchange Board of India (Employees’ Service) (Amendment) Regulations, 2024.

2. They shall come into force on the date of their publication in the Official Gazette.

3. In the Securities and Exchange Board of India (Employees’ Service) Regulations, 2001—

I. In regulation 6, in sub-regulation (4), clause (d) shall be substituted by the following, namely,–

“(d) Competent authority shall constitute a selection committee, comprising such number of persons and outside experts as may be determined for recruitment and promotion:

Provided that for recruitment at the level of Executive Director on deputation or contract, the Competent authority shall constitute a search-cum-selection committee, comprising such number of persons and outside experts as may be determined:

Provided further that the appointment to the post of Executive Director shall be approved by the Board before an offer of appointment is issued to the selected candidate.”

II. In the Schedule, in the Table,

i. in the heading in column 5, after the word “Committee”, the words and symbol “/ Search-cum-Selection Committee” shall be inserted.

ii. in row 1, in column 5, the text shall be substituted with the following, namely,–

“For Promotion – Chairman, two other members of the Board and two external experts to be nominated by the Chairman shall constitute the Selection Committee.

For Deputation/ Contract – Chairman, two other members of the Board and two external experts to be nominated by the Chairman shall constitute the Search-cum-Selection Committee.

[In case of deputation from Government or other organizations, terms and conditions of deputation to be finalized in consultation with the lending organization.]”

BABITHA RAYUDU, EXECUTIVE DIRECTOR

[ADVT.-III/4/Exty./737/2023-24]

Footnotes:

1. The Securities and Exchange Board of India (Employees’ Service) Regulations, 2001, were published in the Gazette of India on 6^th September, 2001 vide S.O. No. 857(E).

2. They were subsequently amended –

(a) On 23^rd December, 2003 by the Securities and Exchange Board of India (Employees’ Service) (Amendment) Regulations, 2003 vide F. No. SEBI/LE/15/2003.

(b) On 25^th May, 2004 by the Securities and Exchange Board of India (Employees’ Service) (Amendment) Regulations, 2004 vide S.O. No.623 (E).

(c) On 11^th April, 2007 by the Securities and Exchange Board of India (Employees’ Service) (Amendment) Regulations, 2007 vide F. No.11/LC/GN/2006/2143.

(d) On 14^th January, 2010 by the Securities and Exchange Board of India (Employee ’ Service) (Amendment) Regulations, 2010 vide notification No. LADNRO/GN/2009-10/28/190983.

(e) On 12^th October, 2010 by the Securities and Exchange Board of India (Employees Service) (Second Amendment) Regulations, 2010 vide notification No. LAD-NRO/GN/2010-11/17/22954.

(f) On 10^th October, 2011 by the Securities and Exchange Board of India (Employees Service) (Amendment) Regulations, 2011 vide notification No. LAD-NRO/GN/2011-12/26/31671.

(g) On 2^nd May 2012 by the Securities and Exchange Board of India (Employees’ Se vice) (Amendment) Regulations, 2012 vide notification No. LADNRO/GN/2012-13/03/5290.

(h) On 19^th November 2012 by the Securities and Exchange Board of India (Employees’ Service) (Second Amendment) Regulations, 2012 vide notification No. LAD-NRO/GN/2012-13/223/5429.

(i) On 8^th October, 2013 by Securities and Exchange Board of India (Employees’ Service) (Amendment) Regulations, 2013 vide notification No. LADNRO/GN/2013-14/27/6721.

(j) On 26^th February, 2015 by Securities and Exchange Board of India (Employees’ Service) (Amendment) Regulations, 2015 vide notification No. LAD-NRO/GN/2014-15/22/366.

(k) On 21^st April, 2015 by Securities and Exchange Board of India (Employees’ Service) (Second Amendment) Regulations, 2015 vide notification No. SEBINRO/OIAE/GN/2015-16/002.

(l) On 30^th November, 2016 by Securities and Exchange Board of India (Employees’ Service) (Amendment) Regulations, 2016 vide notification No. SEBI/LAD/NRO/GN/2016-17/016.

(m) On 15^th December, 2016 by Securities and Exchange Board of India (Employees’ Service) (Second Amendment) Regulations, 2016 vide notification No. SEBI/LAD/NRO/GN/2016-17/024.

(n) On 27^th April, 2017 by Securities and Exchange Board of India (Employees’ Service) (Amendment) Regulations, 2017 vide notification No. SEBI/LAD/NRO/GN/2017-18/001.

(o) On 17^th May, 2017 by Securities and Exchange Board of India (Employees’ Service) (Second Amendment) Regulations, 2017 vide notification No. SEBI/LAD/NRO/GN/2017-18/002.

(p) On 13^th July, 2017 by Securities and Exchange Board of India (Employees’ Service) (Third Amendment) Regulations, 2017 vide notification No. SEBI/LAD-NRO/GN/2017-18/010.

(q) On 27^th April, 2018 by Securities and Exchange Board of India (Employees’ Service) (Amendment) Regulations, 2018 vide notification No. SEBI/LAD-NRO/GN/2018/09.

(r) On 31^st May, 2018 by Securities and Exchange Board of India (Employees’ Service) (Second Amendment) Regulations, 2018 vide notification No. SEBI/LAD-NRO/GN/2018/18.

(s) On 1 3^th August, 2018 by Securities and Exchange Board of India (Employees’ Service) (Third Amendment) Regulations, 2018 vide notification No. SEBI/LAD-NRO/GN/2018/29.

(t) On 8^th May 2019 by Securities and Exchange Board of India (Employees’ Service) (Amendment) Regulations, 2019 vide notification No. SEBI/LAD-NRO/GN/2019/15.

(u) On 5^th August, 2020 by Securities and Exchange Board of India (Employees’ Service) (Amendment) Regulations, 2020 vide Notification No. SEBI/ LAD-NRO/GN/2020/26.

(v) On 24^th January, 2022 by Securities and Exchange Board of India (Employees’ Service) (Amendment) Regulations, 2022 vide Notification No. SEBI/ LAD-NRO/GN/2022/65.

(w) On 22^nd June, 2022 by Securities and Exchange Board of India (Employees’ Service) (Second Amendment) Regulations, 2022 vide Notification No. SEBI/LAD-NRO/GN/2022/87.

(x) On 30^th December, 2022 by Securities and Exchange Board of India (Employees’ Service) (Third Amendment) Regulations, 2022 vide Notification No. SEBI/LAD-NRO/GN/2022/111.

(y) On 15^th May, 2023 by Securities and Exchange Board of India (Employees’ Service) (Amendment) Regulations, 2023 vide Notification No. SEBI/LAD-NRO/GN/2023/129.

(z) On 20^th October, 2023 by Securities and Exchange Board of India (Employees’ Service) (Second Amendment) Regulations, 2023 vide Notification No. SEBI/LAD-NRO/GN/2023/156.