Experts on Sebi chief search panel chose outside suggestions

The two expert members on search panel, formed to select current Sebi chief, were finalised outside the four suggestions made by the then Finance Secretary, an RTI reply reveals.

According to a note prepared by the then Finance Secretary Ashok Chawla in August 2010, four experts -- SA Dave, Deepak Satwalekar, ex-Managing Director, HDFC, Jayant Verma and Ravi Anshuman of Indian institute of Management Ahmedabad and Bangalore respectively -- were suggested to be a part of five-member search panel to decide on Sebi chief.

The communique was then sent to Omita Paul, adviser to Finance Minister Pranab Mukherjee.

"The composition of the selection committee can be Cabinet Secretary, Finance Secretary, Secretary [Financial Services] and two experts of eminence, who can be Suman K Bery, Director General, National Council of Applied Economic Research and Shekhar Chaudhuri, Director, Indian Institute of Management, Calcutta," Paul said in the note which was approved by the Finance Minister.

The panel was formed to choose successor of CB Bhave, who retired as Sebi chief on February 17, 2011.

As per rules, the Sebi chief and its members has to be shortlisted by a committee comprising the Cabinet Secretary, the Secretary, Department of Economic Affairs, Chairman, Sebi (for selection of whole time members) and two experts of eminence from the relevant field, to be nominated by the central government.

Also, the Finance Ministry has "no information" including file notings and comments by the selection committee members which chose the chief of market regulator Securities and Exchange Board of India (Sebi), UK Sinha.

"No such information is available," the Ministry said in response to to the RTI query filed by PTI seeking file notings and comments of all selection committee members for rejecting and selecting eligible candidates for the post of Sebi chief.

The Finance Ministry was asked to give details including terms and reference of the selection panel and comments recorded by its members among others.

According to the reply, the name of Sinha was not in the five names -- GP Singhal, R Bandhopadhyay, Sidhartha Pradhan, Himadri Bhattacharya and R Sridharan -- initially decided by the search-cum-selection panel.

"The Search-cum-selection committee chaired by the Cabinet Secretary constituted for selection of Chairman, Sebi, had met on November 2, 2010 and shortlisted five applicants to be called for a personal interaction. In addition, the Committee had also decided to invite UK Sinha for the interaction," the reply said.

The Committee again met on December 13, 2010 to interact with six shortlisted candidates and recommended Sinha and Bhattacharya as the suitable choices on the basis of merit for Sebi chief.

Following the recommendation, a note was put up before the Finance Minister who on the very same day appointed Sinha as the Chairman, Sebi.

Sinha had taken over the charge from Bhave on February 12 last year.