44 in fray for Sebi chairman's post

The contest for next chairman of the market regulator has gained pace

The contest for next chairman of the Securities and Exchange Board of India (Sebi) has gained pace. Sources say 44 people, including top bureaucrats and bankers, have applied, in response to the advertisement.

Some of those who have applied include the central government's former joint secretary (capital markets), Thomas Mathew; divestment secretary Neeraj Gupta, additional secretary (investments) Ajay Tyagi and labour secretary Shankar Aggarwal. 

Also the secretary, department of financial services, Anjuly Chibb Duggal, beside former Sebi member Rajeev Agrawal. Some prominent bankers are also believed to have applied. Current chairman U K Sinha’s tenure ends on March 1, 2017. The government initiated the selection process in September. The last day for applications was October 21

“Top bureaucrats who have expertise in the law and financial markets have applied. The short-listing of names would require some more time, said a senior official. “The chairman shall receive a consolidated pay package of Rs 450,000 a month as recommended by the seventh pay commission and subsequently accepted by the government...” the government invitation had said. 

It had invited applications from “persons with high integrity, eminence and reputation, preferably with more than 25 years of professional experience and in the age group of 50 to 60 years” and who had shown capacity in dealing with problems relating to the securities market. Appointment is for a five-year term but not beyond the age of 65 years.

The appointment will be made by the government on the recommendation of a committee headed by the cabinet secretary. The committee is free to identify and recommend any other person, on the basis of merit, who has not applied.

Last year, too, the government had called for applications but then decided to extend Sinha's term, citing a need for continuity due to adverse global developments. Sinha became chairman in 2011 for a three-year stint; in 2014, he was given a two-year extension. And, last year, extended by another year. This has given him the second longest tenure as chairman. The longest was of D R Mehta, chairman from February 1995 to February 2002.