New Delhi: The government Monday initiated the process to find a chairperson of market regulator Securities and Exchange Board of India (SEBI), a month before the end of tenure of the current chief Madhabi Puri Buch, who was involved in an unsavoury conflict of interest row.
The appointment will be for five years or till the candidate attains 65 years of age, as per the advertisement by the Department of economic Affairs under the Finance Ministry. The last date for filing of applications is February 17.
The ministry also said that keeping in view the role and importance of SEBI as a regulator, the candidate should have “high integrity, eminence and reputation preferably above 50 years with more than 25 years of professional experience”.
The candidate is also required to have a “shown capacity in dealing with problems relating to securities markets, or has special knowledge or experience of law, finance, economics, accountancy’ which in the opinion of the central government shall be useful to the board”.
“The chairman should be a person who does not and will not have any such financial or other interests as are likely to affect prejudicially his function as the chairman,” the advertisement added.
Buch, the first woman to lead SEBI, assumed charge at the helm on March 2, 2022, for a period of three years. She succeeded IAS officer Ajay Tyagi who served as SEBI chief from March 1, 2017 to February 28, 2022.
However, Buch’s tenure saw heightened controversy last year when employees of SEBI protested against “toxic work culture”, besides a series of allegations by short-seller Hindenburg and the Congress party.
Hindenburg earlier this month announced shutting down its business.
In August last year, Buch faced pressure to resign after US-based short-seller Hindenburg Research accused her of having conflict of interest that prevented a thorough examination of manipulation and fraud claims at the Adani Group.
Hindenburg accused Buch and her husband, Dhaval Buch, of investing in offshore entities that were allegedly part of a fund structure in which Vinod Adani — the elder brother of Adani group founder chairman Gautam Adani — also had investments.
Buchs had denied the allegation saying the investments were made before she joined the regulator and she had complied with all disclosure requirements.
The government on its part did not publicly say if it had sought an explanation from Buch.
In a public advertisement, the department of economic affairs under the finance ministry invited applications from candidates by February 17.
“The appointment shall be made for a maximum period of 5 years from the date of assumption of charge or till attaining the age of 65 years of the appointee, whichever is earlier,” the ministry said.
The chairperson will receive a pay equivalent to a secretary to the government of India which is Rs 5,62,500 per month (without house and car), the advertisement said.
The government will appoint the SEBI chairperson on the recommendation of the Financial Sector Regulatory Appointments Search Committee (FSRASC). The committee is also free to recommend any other person also who has not applied for the post on the basis of merit, it added.
As per the procedure for the appointment of regulators, the candidate is shortlisted by the FSRASC, headed by Cabinet Secretary. As per the SEBI Act, SEBI chairman is appointed for a maximum period of five years or till 65 years, whichever is earlier.
Previously, the government had appointed Tyagi for a period of three years.
Subsequently, he was given a six-month extension and later in August 2020, his tenure was extended by another 18 months.
The government had also given an extension to U K Sinha, who was at the helm of SEBI before Tyagi took charge. Sinha, led SEBI from February 18, 2011, to March 1, 2017′ making him the second longest serving SEBI chief after D R Mehta (February 1995- February 2002).
PTI
