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Current Sebi chairman U.K. Sinha’s tenure ends on 1 March 2017. Photo: Indranil Bhoumik/Mint
Current Sebi chairman U.K. Sinha’s tenure ends on 1 March 2017. Photo: Indranil Bhoumik/Mint

Govt starts process to hire the next Sebi chairman

Sebi chairman to be appointed for a period of five years, or till the age of 65, and receive a consolidated pay of Rs4.5 lakh per month

New Delhi: The finance ministry on Monday invited applications for the post of chairman of the capital and commodities market regulator Securities and Exchange Board of India (Sebi). The tenure of current chairman U.K. Sinha ends on 1 March, 2017.

Sinha, a 1976 batch Indian Administrative Service (IAS) officer of the Bihar cadre, assumed office as chairman of Sebi on 18 February 2011. Initially appointed for a three-year term, he was given a two-year extension. Sinha was given extension of another year in February this year as the government could not finalize anyone from a shortlist.

With the extension, Sinha became the second longest serving Sebi chief after D.R. Mehta, who was at the helm for seven years ending in 2002. Mehta was granted a second extension in 2000, for two years.

In a notification, the finance ministry said the chairman will be appointed for a period of five years or till he turns 65 and will be eligible for reappointment. The chairman shall receive a consolidated pay of Rs4.5 lakh per month, as recommended by the 7th Pay Commission and subsequently accepted by the government. The last date for submitting applications for the post is 21 October.

The finance ministry said keeping in view the role and importance of the regulator, the applicant must have shown capacity in dealing with problems relating to securities markets or have special knowledge or experience of law, finance, economics, accountancy and administration, preferably with more than 25 years of professional experience, and should be in the age group of 50-60 years.

The appointment will be made on the recommendation of the Financial Sector Regulatory Appointments Search Committee (FSRASC) headed by the cabinet secretary. “It may, however, be noted that FSRASC is free to identify and recommend any other person also, on the basis of merits, who has not applied for the post," the statement said.

Former Forward Markets Commission (FMC) chairman Ramesh, Abhishek, who was later appointed industry secretary, State Bank of India chairman Arundhati Bhattacharya and Thomas Mathew, additional secretary in Rashtrapati Bhavan, were the three closest contenders for the post of the Sebi chairman in February.

While Abhishek and Mathew had been shortlisted by a selection panel, Bhattacharya, who had not applied, was invited for the interview.

Sebi’s whole-time member Rajeev Kumar Agarwal, former disinvestment secretary Aradhana Johri and former Reserve Bank of India deputy governor Subir Gokarn, were some of the others in the running to become the next Sebi chairman.

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