Govt close to choosing Sebi's new whole-time member

The selection panel has invited short-listed candidates for the final interview on June 15

The central government will choose from among seven or eight people for the position of wholetime member in the Securities and Exchange Board of India (Sebi). The selection panel, headed by the cabinet secretary, has invited them for a final interview on June 15, said a source.

The announcement is expected this month as Prashant Saran's tenure as member of the market regulator comes to an end on June 27. Saran at the market regulator will for the last time preside over the board meeting, which has been purposively scheduled for June 17.

For the post of Sebi member, government has received several names right from current Sebi officials, economist and few bankers too, application were invited till March 11.

Among Sebi officials, J Ranganayakulu, executive director for legal affairs, Ananta Barua, executive director and in charge of collective investment schemes, foreign portfolio investors and mutual funds and P K Nagpal, head of corporate finance division are the front runners.

Sebi's chief general managers are also applied for the member post. They are Suresh Gupta, adjudicating officer; P K Bindlish, in-charge of the commodity derivatives department and Nagendra Parakh, senior most chief general manager in Sebi, who was a whole time member at Forward Market Commission (FMC), said the source privy to the development.

The appointment will be made by the central government on recommendation of the Financial Sector Regulatory Appointments Search Committee (FSRASC). However, the committee is free to identify and recommend any other person also, on the basis of a merit, who has not applied for the post.

The selection panel will pick the one name for whole time member after the contenders are cleared by the Central Vigilance Commission (CVC), said the people cited above.

As per the ministry of finance notification, member would be appointed for a five-year period or up to the age of 65 years, whichever is earlier. Besides, he would be eligible for re-appointment.

Although, the government is empowered to appoint five members on the board of regulatory body, of which, at least three must be whole-time members.

Currently, there are three whole-time members on the Sebi board, while Arun Sathe, a BJP candidate has been appointed as part time member.

At present, Prashant Saran, is heading investigations and corporate finance division and will be completing his seven-year term this month. The other two-Rajeev Agarwal, a former IRS and S Raman, former chairman and managing director of Canara Bank. Agarwal will complete his five-year term by December-end, while Raman's term will end in 2017.

Currently, Sebi board has four directors representing RBI, the ministries of finance and corporate affairs and an independent director, besides Sebi chief and three full-time members.