Ajay Tyagi takes charge as Sebi chief

Immediate priorities could be commodity market reforms, finalising algorithm norms

Ajay Tyagi assumed charge on Wednesday as the ninth chairman of Securities and Exchange Board of India (Sebi). The former additional secretary in the Department of Economic Affairs, made a confident entry in the Sebi's and is likely to hit the ground running.

Sources said the Finance Ministry has set some action plan for Tyagi particularly in the area of commodity markets. "He has been briefed to focus on integration of the commodity market by allowing interoperability for brokers. The government has a view that commodity market still lacking confidence even post-merger with Sebi and will need some regulatory changes," said a government official.

Besides, he might have to sort some legal issues enabling options trading in commodities.

Another immediate focus for Tyagi would be in the area of corporate governance. "The government is not satisfied with the way high-profile board room battle has been handled," said the person cited above.

Some of the recent corporate governance related issues involve the Tata-Mistry board tussle and tussle between Infosys management and founders.

Sources said that Sebi under Tyagi may soon come out with the detailed guidance note after considering market participants opinion on overhauling of the way listed firms discharge their duties.

NSE' co-location issue and new set of rules for high frequency trade (HFT) would also be in his priority list. Tyagi may also finalise Sebi's action in the unfair access issue at NSE's co-location facility.

Sebi has set up an expert committee to suggest changes to the HFT mechanism.

Other key issues involves start-up listing concept which has failed to take off in a meaningful way. Similarly, other new instruments such as municipal bonds, real estate investment trusts (REITs) and infrastructure investment trusts (InViTs) also haven't made much headway.

Tyagi, a 1984-batch IAS officer of Himachal Pradesh cadre, has handled capital markets division in the Finance Ministry. That experience would be crucial at Sebi.

Tyagi has diverse experience at the Centre. He was Joint Secretary in the Ministry of Environment, Forest and Climate Change before joining Finance Ministry in November 2014 as Additional Secretary. He has also worked in ministries of Petroleum and Natural Gas, Steel and Rural Development. A native of Uttar Pradesh, he had done post graduation in Economics. He did Master's in Public Administration from Harvard and holds Master's degree in Technology (Computer Science), as per his official resume.

Tyagi will succeed Sinha who was the second-longest serving Sebi chief after D R Mehta's seven-year term from 1995 to 2002.