The finance ministry, for the first time, has said that former Sebi chairman C B Bhave’s appointment was made despite the regulator’s current boss U K Sinha being at the top of the short-listed candidates and that the former was disinclined to be considered for the post.
An affidavit it filed in the apex court also said that at the time of selection of the Sebi Chairman in 2008, the then finance minister (P Chidambaram) had approved on November 2, 2007, a high-powered search committee that had four members and one chairman.
A third meeting of the committee, held on 29 January 2008, decided that the Government should take a view on the candidature of the then Sebi chairman M Damodaran, on the basis of available material. The panel also unanimously shortlisted two names in the following order: a) U K Sinha and b) J Bhagwati.
The affidavit says the committee also recorded that Bhave had informed the committee of his disinclination to be considered as Sebi chairman at that point of time. However, “notwithstanding the recommendation” of Sinha by the selection committee, Bhave was appointed as Sebi chairman on 15 February 2008. The recommendation of the committee in relation to Sinha was “unanimous”, affidavit added.
