In these rules, unless the context otherwise required :-
(a) “Ordinance” means the Securities and Exchange Board of India, Ordinance, 1992 (15 of 1992).
(b) “Board means the Securities and Exchange Board of India, established under section 3 of the Ordinance;
(c) “Chairman” means the Chairman of the Board.
(d) “Member” means a Member of the Board.
3. Terms and Conditions of Service of Chairman and Members –
(1) The Chairman or the Whole-Time Member shall be a person who does not, and will not, have any such financial or other interests as are likely to affect prejudicially his functions as such Chairman or Member.
(2) The Chairman and every whole-time Member shall hold office for such period, not exceeding 5 years, as many be specified in the order of his appointment; but he shall be eligible for reappointment;
Provided that no person shall hold office as the Chairman or a Member after he attains the age of sixty-five years.
(3) The Chairman or a whole-time member appointed to fill up a causal vacancy shall hold office for the reminder period of the term of the Chairman or, as the case may be , member in whose place he is appointed.
(4) The Chairman or whole time Member shall not accept any employment before the expiry of a period of one year from the date of demitting the office in the Securities and Exchange Board of India, except with the previous sanction of the Central Government.
(5) The Chairman and every whole time Member shall be appointed by the Central Government on the recommendation of the Financial Sector Regulatory Appointments Search Committee consisting of the following, namely:-
(a) Cabinet Secretary – Chairman;
(b) Additional Principal Secretary to the Prime Minister – Member;
(c) Secretary, Department of Economic Affairs – Member;
(d) Chairman, Securities and Exchange Board of India – Member;
(for selection of whole-time Member)
(e) Three outside experts of repute (to be nominated by the – Member.
Central Government from a panel of experts in the fields of Finance, Economics, Law, Public Administration, Financial Markets and related subjects maintained by it)
4. Pay –
(1) The Chairman and Whole Time Members shall have the option to receive pay as admissible to a Secretary to the Government of India in the case of a Chairman and an Additional Secretary in the case of a Whole Time Member; or a consolidated salary of such amount, as may be determined by order of the Central Government, without house and car.
(2) The pay or the consolidated salary referred to in sub-rule (1) shall be applicable with effect from such date as the Central Government may by order, determine, from time to time:
Provided that where a person who has retired from service under the Central Government or a State Government who is in receipt of, or has received, or has become entitled to receive any retirement benefits by way of pension, gratuity, employer’s contribution to the Contributory Provident Fund or other funds or retirement benefits, is appointed as Chairman or a Whole Time Member and such person exercise his option to receive pay as admissible to a Secretary or as the case may be, an Additional Secretary to the Government of India, then the pay and allowances of such Chairman or Member, as the case may be, shall be reduced by gross amount of pension and pension equivalent of gratuity or employer’s contribution to the Contributory Provident Fund or any other form of retirement benefits, if any, drawn or to be drawn by him.