The Centre has begun search for a new whole-time member for markets regulator Securities and Exchange Board of India (Sebi), even as the government is yet to decide whether the incumbent chairman Ajay Tyagi will get an extension.
Tyagi’s tenure ends on February 28, 2020, while whole-time member Madhabi Puri Buch is completing her three-year term on April 4, 2020.
In a notification issued on December 16, the Ministry of Finance invited applications for filling the post of whole-time member in Sebi by January 27. However, the ministry did not specify the total number of vacancies.
Currently, Sebi has four whole-time members. The other three whole-time members’ tenure will end in 2021.
Buch is handling some key units, such as market regulation, surveillance, economic and policy analysis, and information technology. Prior to this assignment, Buch served as consultant to the New Development Bank in Shanghai, China. She also served as managing director and chief executive officer at ICICI Securities and was executive director on the board of ICICI Bank.
Buch’s appointment is the first-of-its-kind when a woman will be chosen for a key post with the markets regulator.
The appointment will be for a maximum period of five years, or till the attainment of the age of 65 years, whichever is earlier, said the ministry notification. The member would have the option to receive pay as admissible to an additional secretary to the Government of India, or a consolidated salary of Rs 3.75 lakh per month. Besides, he/she would be eligible for reappointment. Similar appointment conditions apply for the chairman. The chairman is given the option to receive pay as admissible to a secretary to the Government of India, or a consolidated salary of Rs 4.5 lakh per month.
“The appointment shall be made by the central government on recommendation of the Financial Sector Regulatory Appointments Search Committee (FSRASC). It may, however, be noted that the FSRASC is free to identify and recommend any other person also, on the basis of merit, who has not applied for the post,” the ministry said.
In addition to the post of chairman, the government is empowered to appoint five members on the board of this key regulatory body, which regulates stock exchanges, market entities, including brokers, mutual funds, foreign institutional investors, rating agencies, and investment bankers, as also listed companies.