Section 4B(6) in The Securities Contracts (Regulation) Act, 1956
(6)The Securities and Exchange Board of India may, while approving the scheme under sub-section (2), by an order in writing, restrict—(a)the voting rights of the shareholders who are also stock brokers of the reognised stock exchange;(b)the right of shareholders or a stock broker of the recognised stock exchange to appoint the representatives on the governing board of the stock exchange;(c)the maximum number of representatives of the stock brokers of the recognised stock exchange to be appointed on the governing board of the recognised stock exchange, which shall not exceed one-fourth of the total strength of the governing board.
