SEBI had earlier appointed a committee to look into this aspect and after a solitary meeting the committee did not meet for quite sometime. However, with the recent crisis blowing up into a major controversy and raising issues of curbing interference by brokers in the surveillance-related functions of an exchange, SEBI has convened a meeting of the committee on April 13.

Interestingly, SEBI is also planning to induct some outsiders into the committee to suggest a code that may be adopted. Currently, stock exchange chiefs of a few bourses make up the committee.

SEBI, it is learnt, has already collated details of the practices followed abroad and will discuss these with the committee at the next meeting.

"This is the most opportune time to take up this issue. Initial discussions have alreadytaken place at the last meeting and we hope to be able to make a start by coming out with some interim recommendations", said a senior SEBI official.

The SEBI chairman DR Mehta had recently told this paper that the recent crisis had thrown up some points which needed to be considered and one such valid point was that of allowing only a non-active broker to head a stock exchange.

However, this appears to be a distant dream but SEBI is looking at reducing the interference of broker directors in the day-to-day functioning of an exchange.

"The last meeting had thrown up issues like reducing the conflict of interest when a broker who is an active trader also graces a decision-making body like the governing board. In the recent case, this is exactly what has happened and hence we need to take a relook at the current procedures in place. A broker director must also not have access to sensitive information by virtue of his position as this could give him an unfair advantage over his rivals. Broker directorsmust also not be involved in the recruitment process of employees as this creates a pool of personally loyal staff which can be used to influence certain decisions. All these issues would be discussed further in detail," said the source.