New Delhi, Oct. 7 -- The Securities and Exchange Board of India (Sebi) has informed the Bombay High Court that it will soon review a controversial provision in its 'fit and proper person' criteria that disqualifies key personnel at market intermediary firms merely for having a charge sheet filed against them.

This follows a legal challenge from prominent brokerage firms, which have argued the rule is unconstitutional as it amounts to treating a person as "guilty until proven innocent".

The markets regulator made the statement before a division bench of the high court comprising Justice RI Chagla and Justice Farhan Dubash that was hearing a clutch of petitions filed in 2023 by a consortium of leading brokerages including Motilal Oswal Fi...