Panel considers Bhave to succeed himself

Incumbent Sebi chief C B Bhave is being considered as a probable candidate by a high-level search panel that was set up to find his successor at the market regulator.

Bhave took charge as Sebi chairman on February 18, 2008 on a three-year term. However, the terms of chairman and whole-time directors at Sebi have been increased to five years since then. Similarly, the terms of RBI and insurance watchdog IRDA's chiefs have also been increased to five years.

Despite this, the government in September this year set up year a high-level committee headed by Cabinet Secretary K M Chandrasekhar to find a successor to Bhave whose term ends in February 2011.

At that time, it was said the government did not want to extend Bhave's term to five years in the wake of a public spat between Sebi and IRDA.

The search panel has already conducted initial rounds of interviews. The panel at the last moment deferred the final rounds that was scheduled to be held on December 3.

Sources close to the development said Bhave's name was now being considered by the panel after some top policy makers asked why Bhave, like other regulators, could not be given a five-year term.

Besides, pullout by some candidates nominated by the search panel from the process also led to the committee considering giving Bhave a two-year extension, which if given will give incumbent Sebi Chairman time till February 2013.

Sources said there are some procedural problems in giving Bhave a direct two-year extension, as the process has been in place to find his successor and the search panel can not simply ignore already short-listed candidates for the coveted job.

Therefore, the panel in most likelihood would consider Bhave as one more probable candidate for holding the position of Sebi Chairman February 18, 2011 onwards, they added.

The panel is likely to hold its next meeting on Decemebr 21 which could be its final meeting and wherein it could decide on the name of next Sebi chief after deliberating on all the short-listed candidates, including Bhave.

Until Bhave's name came up for the panel's consideration, those tipped to be leading the race included mutual fund industry body AMFI's Chairman, U K Sinha, and Corporate Affairs Secretary R Badyopadhyay.

The panel, which also includes Finance Secretary Ashok Chawla, Financial Services Secretary R Gopalan and Department of Personnel Secretary Shantanu Consul as members, last met in early November to decide on the final list of candidates.