Its Bureaucrats Vs Professionals At Sebi

The Securities and Exchange Board of India (Sebi) is in the throes of discontent leading to a slowdown in the pace of work and reforms within the organisation.

According to a section of leading market players and sources within Sebi, the dissatisfaction is primarily due to a clash between two types of approaches adopted to run the organisation.

"The first is a hierarchical approach which comes from the industry, and the second is the bureaucratic approach. Those who have been in the industry and have come to Sebi, understand the professional approach towards clearing off work. Those who have come on deputation from some government body follow a cautious approach before taking a decision," a Sebi insider said.

 

The cautious' approach, sources say, means that if a file comes for clearance to one department, the concerned officer may just say that a legal view is essential. "In this case, it is difficult for even the Sebi chairman to clear the file unless a legal outlook is taken and all aspects are examined," the source added.

Within Sebi, officers have been dem-anding a systematic recruitment, transfer and promotion policy. Discord has been brewing over appointments of people on deputation. Leading market players feel that differences would certainly crop up as the approach towards work is different.

"There is a need for Sebi to identify star performers at the junior level and allow them to thrive by promoting them. The body needs to be run like any professionally-managed organisation and not like a government department. Sebi has been recruiting people at junior levels but at key positions they are hiring people from other government organisations like the I-T department and RBI," a leading market intermediary commented.

Within Sebi there are officers who feel that things can move faster "All key issues are discussed in the committee of directors meeting on Tuesdays. While on the one hand it is a positive move to debate issues vital to the entire capital market, on the other it results in delaying decision-making," a source at a leading mutual fund said.

A section of players, which manage stock exchanges, has also complained about the treatment meted out to them by the Sebi staff. "Stock exchanges in Mumbai can get their work done by personally meeting senior Sebi officials in case of any problem at the junior level.

However, upcountry stock exchanges have to struggle for having the simplest amendments in bye-laws effected. A proper system for correspondence with the stock exchange top brass too is essential," a source said.

A leading market player complained that the secondary market advisory committee has not met for 18 months.

"Nobody in Sebi is ready to take responsibility for organising the meet," a committee member complained.