Sebi Treads A Different Path, Flashes Ad For Eds Post

Departing from its usual tradition of recruiting its senior officials from the Income Tax Department, Enforcement Directorate or Reserve Bank of India (RBI), the capital market watchdog Securities and Exchange Board of India (Sebi) has, for the first time, come out with an advertisement for the post of executive director (ED).

The candidate needs to have qualifications in finance, economics or law or any other discipline which, in the opinion of Sebi, is 'useful,' though there is no indication what this qualification could be. Candidates would have to have experience in dealing with problems in the securities markets with special knowledge of "investigation, banking, finance, accountancy, or any other discipline considered useful to Sebi."

At present, there are five executive directors in Sebi, while the sanctioned posts are seven. Senior officials said it has not yet been decided where the new ED would fit in. "That will be decided when the ED is recruited," sources said. The intention is to fill up the sanctioned posts.

However, sources in the know pointed out that many of the EDs are burdened with numerous functions under them. For instance, C M Mehra, in charge of administration, also looks after mutual funds and vigilance. R M Joshi, is in charge of the primary markets, including takeovers and depositories. The addition of a new ED would have the effect of spreading out the functions further. Sources also said, that considering the burden of investigations on the regulator, it was felt there should be more executives looking after this function.

Out of the five EDs at Sebi, three - Mehra, C S Kahlon and Joshi -- are on deputation from the Income Tax and RBI.

While their terms are indefinite at present, they will sooner or later return to their parent organisations. Sources said the intention was to build up a senior management cadre, below the chairman, which would permanently belong to Sebi.

At present, Pratip Kar and Dharmishtha Raval are the only permanent EDs in the organisation.