Currently, if shareholders want to propose a slate of directors, they need to pay for the cost themselves.
The regulator is expected to pass the rule 3 to 2, with the two Republican commissioners dissenting, the paper reported, citing people familiar with the matter.
A meeting is scheduled for Aug 25.
Under the new rule, shareholders would have to own a 3 percent stake in a company for at least two years to qualify for the right to nominate directors, the paper said, adding that people familiar with the matter cautioned that final details may change as negotiations continue.
(Reporting by Jennifer Robin Raj in Bangalore; Editing by Neil Fullick)