Sebi Chairman appointment: Decision soon as extended tenure of incumbent Ajay Tyagi to end this month

The government will soon take a decision on the appointment of Sebi Chairman as the extended tenure of incumbent Ajay Tyagi will be ending this month.

Sources said senior bureaucrats and former members of Securities and Exchange Board of India (Sebi) have applied for the position.

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The finance ministry had invited applications from eligible candidates in October 2021 for the post of Sebi Chairman and the deadline for submission of the applications was December 6, 2021.

It is not yet clear whether Tyagi will get another extension or a new appointment will be made.

On Tuesday, Finance Minister Nirmala Sitharaman said "the process of calling for application has already happened... Shortlisting probably is yet to happen" while responding to a question regarding the tenure of Tyagi coming to an end this month.

When asked whether the incumbent will get an extension or a new person will be appointed, she had said, "you have to wait till February 28 to know what we are going to do on it (Sebi Chairman)."

Tyagi, a 1984 batch IAS officer of Himachal Pradesh cadre, was appointed as Sebi Chairman on March 1, 2017, for a period of three years. Subsequently, he was given a six-month extension and later in August 2020, his tenure was extended by 18 months.

As per the procedure for the appointment of regulators, the candidates are shortlisted by the Financial Sector Regulatory Appointments Search Committee (FSRASC) headed by Cabinet Secretary.

The shortlisted candidates are interviewed by the panel comprising Economic Affairs Secretary and three external members having domain knowledge. Besides, the high level panel has authority to recommend names other than those who have applied for the advertised post.

Based on interactions, FSRASC recommends name to the Appointments Committee of Cabinet headed by Prime Minister Narendra Modi.

In an advertisement issued on October 28 last year, the finance ministry invited applications from eligible candidates for the post of Sebi Chairman for a maximum period of five years or till 65 years, whichever is earlier.

The government had given an extension to U K Sinha for three years, making him the second longest-serving chief of Sebi after D R Mehta. Sinha was at the helm before Tyagi took charge.

In the case of Tyagi, the government issued appointment notification twice.

According to the first notification issued on February 10, 2017, Tyagi, then Additional Secretary (Investment) in the Department of Economic Affairs, was appointed as the Sebi Chairman for a period not exceeding five years or till the age of 65 years or until further orders, whichever is earlier.

Subsequently, another notification curtailed his appointment to an initial period of three years.