Government headhunts for new Sebi chief

The finance ministry has put out an advertisement seeking applications from eligible candidates for the post and gave just two weeks against the usual practice of three months. Further, the tenure of the watchdog is again being extended to five years.

IMAGE: Chairman Ajay Tyagi's tenure ends on March 1, 2020. Photograph: Danish Siddiqui/Reuters.

The Centre on Monday kick-started search for the chairman of the Securities and Exchange Board of India (Sebi) to succeed Ajay Tyagi, whose tenure ends on March 1.

According to the eligibility criteria advertised, “The chairman shall hold office for such period not exceeding five years and shall not hold office beyond 65 years of age, whichever is earlier. He is eligible for re-appointment.”

Tyagi took charge from his predecessor U K Sinha on March 1, 2017, for five years but it was later slashed to three years.

The Sebi chief will draw a consolidated pay of Rs 450,000 per month.

The applications for the post should be filed latest by February 10. Candidates should have experience in the securities market and related fields will be considered for the post. Besides, 25 years of professional experience.

The appointment will be made by the government on the recommendation of the Financial Sector Regulatory Appointments Search Committee, headed by the Cabinet secretary. Besides the applicants, the search committee is also free to identify and recommend any other person, on the basis of merit, who has not applied for the post.

“It is quite surprising and not according to the convention that was followed in previous appointments of such an important post,” said a former government official. According to him, there could be procedural issues or the government wants to re-appoint someone.

Sources say that this might be just a procedure which the government had to follow even if it decided to give an extension to Tyagi.