Sebi chairman to begin new term

U K Sinha has been awarded a 2 year extention by the Government

Capital market regulator Sebi's chairman U K Sinha is set to begin a new term in office, as the government has notified a two-year extension to him.

Sinha, a former IAS officer who has previously also served as chief of UTI Mutual Fund, was appointed as Sebi chairman in February 2011 for three years and that tenure would end tomorrow.

With an aim to ensure continuity in top positions at major regulatory authorities, the government decided to extend his term by further two years and the same has been notified through a gazette notification dated February 6, 2014.

The Finance Ministry said in the notification that it is extending the "appointment of U K Sinha, as Chairman of the Sebi with effect from the February, 18, 2014 for a period of two years or till the age of sixty five years or until further orders, whichever is earliest".

Sinha's current tenure has seen the capital market watchdog initiating various measures including in areas of corporate governance, crackdown on fraudulent money pooling schemes and action against large corporates, as also steps to deepen the markets and to safeguard overall investor interest.

Summing up Sebi's activities in the past one year, Sinha told PTI in a recent interview that the regulator was able to provide clarity and a direction to the market in areas like corporate governance and investor protection.

At the same time, many illicit schemes including those promising huge returns on goat farming, emu rearing, potatoes, art funds, real estate and holiday memberships, came under Sebi's radar with their perpetrators facing crackdown.

For 2014, Sebi has identified areas like insider trading, risk management and further strengthening of investor grievance redressal mechanism as focus points, Sinha has said.

Last week itself, Sebi board approved stringent corporate governance norms for listed companies that, among others, requires them to keep a check on excessive executive pay and put in place a whistle blower mechanism for employees.

Besides, a new long-term policy has been approved for mutual funds and compliance to KYC norms have been made simpler for investors and market intermediaries.