Govt faces leadership gaps across key financial regulatory bodies

The government will soon need to start a headhunting exercise to fill up top positions across key financial regulatory bodies, including those overseeing pension, insurance, banking and financial reporting. This comes as several of these roles are currently vacant or will soon be available.

 

For the chairperson’s post in the Insurance Regulatory and Development Authority of India (Irdai), the department of financial services (DFS) in the Ministry of Finance will be accepting applications till April 6. The selection process will begin thereafter. The term of its last chairperson Debashish Panda ended on March 13. 

 

“The applicant should have a minimum of two years of residual service as on the date of vacancy, that is, 14.03.2025. And, the applicant’s age should not exceed 63 years on the said date,” the DFS has said in its notification inviting applications.

 

The Ministry of Corporate Affairs (MCA) had extended the date for applying for the position of National Financial Reporting Authority (NFRA) chairperson till March 21. The ministry is in the process of finalising a list of candidates for the key post as regulator overseeing financial reporting and auditing standards in the country. The term of its current chairperson Ajay Bhushan Pandey will be over by March-end.

 

NFRA chairperson’s term is for three years or till the person attains 65 years of age, whichever is earlier.

 

Any person applying for the post of chairperson or member of the authority must not be associated with any audit or consultancy firm during appointment and two years after their term ends, MCA stipulates.

 

The finance ministry will also have to begin the process to select the chairperson of the Pension Fund Regulatory and Development Authority (PFRDA).

 

It will fall vacant around May-June as the current chairperson Deepak Mohanty will turn 65 by then. The last date for submitting applications for the post to the DFS ended on December 31, 2024.

 

Under the PFRDA Act 2013, a PFRDA chairperson shall hold office for five years from the date he starts work and will be eligible for re-appointment. No chairperson shall hold office after attaining the age of 65 years, according to the PFRDA Act. 

 

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

 

Besides these regulatory positions, the finance ministry would also be looking to appoint a full-time revenue secretary.

 

Currently Ajay Seth, finance and economic affairs secretary, holds additional charge as secretary, revenue department.

 

The post of deputy governor, Reserve Bank of India (RBI) — for which the last date of applying was November 30, 2024 — is also yet to be announced by the government.

 

Amid speculation that fresh names will be invited for the post, a government official in the know denied it.

 

“There will be no call of applications again with respect to the deputy governor post,” he said. 

Top Vacancies

 

-  The DFS will be accepting applications till April 6 for the Irdai chairperson post 

  -  The Ministry of Corporate Affairs had extended the date for applying for NFRA chairperson position till March 21 

  -  The finance ministry will also have to begin the process to select PFRDA chairperson, which will fall vacant around May

  -  The finance ministry is also looking to appoint a full-time revenue secretary 

  -  The post of RBI deputy governor, for which the last date of applying was November 30, 2024, has been vacant since mid-January