Govt begins process to appoint new whole-time members on Sebi board

Mumbai: The government has begun the search for a new whole-time member on the board of the Securities and Exchange Board of India (Sebi) as the terms of several officials are due to come to an end in the near future.

The three-year terms of two whole-time members, S K Mohanty and Ananta Barua, come to an end in June and August, respectively.

Both Mohanty and Barua are eligible for re-appointment. However, it’s not clear whether the government would give them an extension or prefer a new candidate.

Applications have been invited from interested candidates by April 30.

The whole-time member would have an option to receive pay as admissible to an additional secretary to the government of India, or a consolidated salary of Rs 4 lakh per month.

In 2018, both Mohanty and Barua, who were previously executive directors, were elevated as whole-time members of the Sebi board.

Mohanty is in charge of the corporate finance department and the National Institute of Securities Market (NISM), while Barua oversees the legal and enforcement, debt securities and market intermediaries regulation departments.

The senior management of Sebi is likely to witness a reshuffle this year with the terms of the other two whole-time members, Madhabi Puri Buch and G Mahalingam, also coming to an end.

Last year in April, the government had extended Madhabi Puri Buch’s term by six months citing the economic impact of the coronavirus pandemic. Although the government had screened several candidates for the post of a whole-time member, the government extended her tenure by one more year in October, as it opted for continuity in an uncertain economic environment.

Mahalingam’s five-year tenure will come to an end in November this year.

Whole-time members of regulatory bodies such as Sebi are given a maximum five-year term or until they attain 65 years of age, whichever is earlier. They are also eligible for re-appointment.

Former Sebi member Prashant Saran had a seven-year stint.

Madhabi Puri Buch is in charge of investment management, surveillance, and collective investment schemes. Mahalingam, oversees investigations, foreign portfolio investors, regulations and the commodities market.

Last year, the government chose to give an 18-month extension to Sebi chairman Ajay Tyagi to ensure that there are no disruptions at regulatory bodies. Tyagi’s term comes to end in February 2022.