New Delhi: A public interest litigation (PIL) was filed in the Supreme Court on Friday challenging amendments to rules governing the appointment of members to the Securities and Exchange Board of India (Sebi).
The petitioners were asked to withdraw the petition and refile it without allegations against Union finance minister Pranab Mukherjee.
The PIL, filed by retired air marshal S. Krishnaswamy and others, also sought to annul the appointment of U.K. Sinha as Sebi chairman.
The amendment allowed Mukherjee to appoint two members “of his own choosing”. The petitioners said this would compromise Sebi’s functioning as its top officials need to be experts with requisite qualifications, which were not prescribed by the amendment.
Sebi has been surrounded by controversy recently. Former Sebi board member K.M. Abraham wrote a letter to Prime Minister Manmohan Singh alleging irregularities. A Sebi spokesperson declined to comment. Finance ministry officials could not immediately be reached.