SEBI Eases 'Fit and Proper' Norms: No Disqualification on Mere FIR for Brokers

• SEBI removes automatic disqualification for brokers based solely on FIR or charge sheet filing.
• New framework adopts a principle-based approach, assessing integrity and conduct case-by-case.
• Disqualification triggers now primarily involve conviction for economic offenses or securities law violations.
• Mandatory divestment requirements replaced with restriction of voting rights for those declared not 'fit and proper'.
• Threshold for disqualification in insolvency cases raised; individuals must be given a reasonable opportunity of being heard.