Sebi brass rejig: Changes at the top expected in the next six months

Terms of several senior officials with the regulator drawing to a close

The Securities and Exchange Board of India (Sebi) may look very different by the start of the next financial year. A number of individuals at the top are looking at terms expiring by then, while some would have already moved on.

The regulator is already looking to fill some key positions. Interviews for executive directors have been ongoing, informed a source. The regulator had called for applications in July.

It has been looking to fill the posts for one executive director in the legal department as well as another under the general category. Both posts are for a period of three years. The package offered is around Rs 70 lakh per annum, according to the July 25 notice inviting applications.

“Internal candidates (from Sebi’s pool of serving chief general managers fulfilling specified eligibility criteria) will also be considered for the above positions, strictly on the basis of suitability and merit,” it had said.

The pool of available candidates has not been very large, according to a person familiar with the matter. But a decision should be taken soon.

“They have very limited choice,” said the person, who declined to be named, citing the sensitivity of the matter.

The stock market regulator’s last annual report had noted seven executive directors in charge of various departments. This included P K Nagpal, whose key responsibilities included foreign portfolio investors and custodians; S Ravindran ,who was in charge of departments, including the integrated surveillance department; S V Murali Dhar Rao, who looked at collective investment schemes; Nagendraa Parakh of the office of investor assistance and education and commodity derivatives market regulation department; Amarjeet Singh, who handled corporate finance; Sujit Prasad of the market regulation department; and Anand Rajeshwar Baiwar of the investigation department.

The appointment of an executive director in the legal department is likely to be closely watched.  Among recent key developments, the regulator has moved the Supreme Court (SC) after a ruling against its decision to act on auditors Price Waterhouse in relation to the Satyam scandal. It raised questions about the jurisdiction over auditors in such situations where accounts had been falsified. That said, the majority of appeals against the regulator at the Securities Appellate Tribunal has gone in favour of Sebi. There were 138 appeals which went in favour of the regulator. Only 25 rulings went against Sebi.  There are 379 pending appeals.  There are also 156 pending cases in the SC, compared to 165 in the previous year.

In addition to the executive directors, the terms of the chairman and a whole-time member are due to end in the next six months. Madhabi Puri Buch joined as whole-time member on April 5, 2017, with a three-year tenure set to be complete in less than six months. Ajay Tyagi became chairman on March 1, 2017. His term has also been for three years.

An email sent to the regulator did not elicit a reply.

Churn at the top?
 

• The regulator is already looking to fill some key positions
• Process for hiring two new executive directors has started
• Interviews are happening
• Also, a whole-time member’s term expires in April
• Chairman’s term ends in March