On Monday, Chandrasekhar Bhaskar Bhave took charge of the Securities and Exchange Board of India (Sebi) as its chairman. His term of appointment is three years.
Outgoing chairman M. Damodaran congratulated Bhave on his assuming office at the market regulator’s headquarters here.
The new chairman refused to speak about his future plans. “No comments”, is all he said when asked about his agenda in the coming days.
New Sebi chairman C.B. Bhave shakes hands with predecessor M. Damodaran at the market regulator’s headquarters in Mumbai on Monday
Bhave has rejoined Sebi after 12 years; in 1996 he quit to create India’s first share depository, the National Securities Depository Limited (NSDL).
Better known as Chandu Bhave in Mumbai’s financial world, he is no stranger to Sebi, having worked in the organization between 1992-96.
Still, the sixth chairman of Sebi, which was founded in 1992, comes back to a regulator that will have to address a different set of challenges than those it faced in the mid-1990s. The stock market has moved from the badla system, which allowed the person buying or selling a share to carry the transaction forward without settling it at the end of the settlement period to the so-called T+2 system where transactions have to be settled within two days by buyers and sellers.
He also comes back to a regulator that oversees a vibrant derivatives market. And Sebi now has an integrated market surveillance system that tracks marketwide and stock-specific movements. Among the issues Bhave needs to address is one related to innovative capital market instruments.
Mint’s Rachna Monga and Khushboo Narayan contributed to this story.