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Markets regulator Sebi has amended the 'fit and proper person' framework for market intermediaries, removing the automatic disqualification triggered by mere filing of criminal complaints, FIRs, or charge sheets in economic offence cases. The changes are aimed at bringing greater procedural clarity and fairness to the regulatory process. Under the revised norms, the existence of a pending criminal complaint, FIR filed by Sebi, or a charge sheet relating to economic offences will no longer, by itself, lead to automatic disqualification. However, Sebi has expanded the disqualification criteria upon conviction. In addition to offences involving moral turpitude, conviction for any economic offence or violation under securities laws will also attract disqualification, according to a notification dated April 15. Further, initiation of winding-up proceedings will no longer be a ground for disqualification. However, an actual winding-up order will continue to attract ...