Government begins hunt for next Sebi chairman after Ajay Tyagi

NEW DELHI: The government has begun the hunt for a new

Sebi chairman

, barely a month before Ajay Tyagi’s term as market regulator is to end. The move came as a surprise as Tyagi, who had got a three-year term, was widely expected to be reappointed for another two years.


Although there is still a possibility of giving an extended run to the current

Sebi chief

, the finance ministry’s decision to call for applications for the coveted post indicated that Tyagi will have to reapply for the job, something that one of his predecessors M Damodaran refused to do.

Tyagi’s term is due to end at the end of February, with Sebi member Madhabi Puri Buch seen as one of the top contenders to replace her boss. Economic affairs secretary Atanu Chakraborty is another candidate whose name is doing the rounds since he is due to superannuate in a few months.

The Sebi chairman’s appointment has always been a story of twists and turns. For instance, U K Sinha, who was the top contender for the post, was ignored and C B Bhave was appointed as chairman. When Sinha, who succeeded Bhave, was due to hang his boots, he was given a fresh term, although the appointment process had been initiated.

The job has traditionally gone to IAS officers, with former LIC chairman G N Bajpai being the sole exception since Sebi was set up in 1992. But the government has called for applications from those with “capacity in dealing with problems relating to the securities market” or with special knowledge or experience of law, finance, economics, accountancy, administration or “any other discipline” that the government thinks will be useful.

The government has also said that it will give a five-year term to the chairman, something that has been rare at Sebi, with 65 years being the maximum permissible age. Candidates, who are over 50 years and have 25 years of experience, will be considered for the job. The appointment will be based on recommendations of the Financial Sector Regulatory Appointments Search Committee, with regulator’s salary fixed at Rs 4.5 lakh a month.