Finance ministry accepts Sebi's request for fourth whole-time member

The finance ministry has accepted markets regulator Sebi's request to have four whole-time members, a move which will help broaden the top leadership at the regulatory authority to faster discharge of duties.

The demand came in the wake of increased workload seen after Forward Markets Commission merged with Sebi in 2015.

Currently, Sebi has two whole-time members -- Madhabi Puri Buch and G Mahalingam -- while Sanjeev Kaushik was appointed a whole-time member last month. However, he is yet to join the markets regulator.

Kaushik has handled the capital markets in the Department of Economic Affairs, where he was responsible for the policy matters related to current account management, foreign institutional investments, external commercial borrowings and foreign exchange management. He has also worked closely with the Sebi and Reserve Bank of India (RBI).

The Securities and Exchange Board of India (Sebi) had written to the finance ministry recommending that a fourth position of whole-time member be created and the post should be filled up on a priority basis.

The recommendation has been accepted by the ministry last month, officials said.

As per the Sebi Act, the board comprises a chairman, one member each from the finance ministry, corporate affairs and RBI, besides, five other members of whom at least three should be the whole-time members.

Sebi's whole-time member Prashant Saran retired in June last year and Mahalingam joined in his place in October. Rajeev Aggarwal also demitted office in November 2016 and Buch joined in April this year.