Mumbai, Sept. 23 -- India's plan to expand its securities market regulator's board leaves out the one safeguard experts say matters most: an independent selection process.

The Securities Markets Code, 2025, proposes increasing the Securities and Exchange Board of India's (Sebi) board from nine to 15 members and raising the minimum number of whole-time members from three to five. The expansion comes as India's capital markets grow more complex, with algorithmic trading, digital investing, cross-border flows and new financial products creating additional regulatory demands.

But unlike the laws governing the Central Electricity Regulatory Commission (CERC) and the Competition Commission of India (CCI), the Code does not establish a selecti...