The Union government is likely to give the private sector a miss and appoint a bureaucrat as the next chairman of the Securities and Exchange Board of India (Sebi) with the tenure of current chairperson Madhabi Puri Buch ending on Friday.
In January, the Centre had initiated the process to find a successor to Buch when the department of economic affairs under the finance ministry released an advertisement which said the appointment will be for five years or till the candidate attains 65 years of age. The last date to file applications was February 17.
There are now three names which are being speculated for the top job at the market regulator.
These include Ajay Seth — secretary, department of economic affairs. He is a 1987 batch IAS officer of the Karnataka cadre.
Another name doing the rounds is Tuhin Kanta Pandey who in January took charge as the secretary, department of revenue.
Pandey, a 1987-batch IAS officer of the Odisha cadre, previously held the charge of secretary of three departments, including Department of Investment & Public Asset Management (DIPAM).
It is also understood that two whole time members of the market regulator had also applied for the top post: Kamlesh Chandra Varshney and
Ashwani Bhatia.
Varshney was earlier the joint secretary (tax policy and legislation) in the department of revenue. Varshney is 1990 batch Indian Revenue Service Officer.
On the other hand, Bhatia was the managing director, State Bank of India, before taking charge as Sebi whole-time member in June 2022.
The government will appoint the next Sebi chief on the recommendation of the Financial Sector Regulatory Appointments Search Committee (FSRASC) which shortlists the candidate. The FSRASC is headed by the cabinet secretary.
As per the Sebi Act, its chairman is appointed for a maximum period of five years or till 65 years, whichever is earlier.
Buch, who is the first woman chief of Sebi had assumed charge on March 2, 2022, for a period of three years. She is also the first person from the private sector to head the regulator. She was the whole-time member of Sebi from April 2017 to March 1, 2022.
However, her career was also marred by allegations by short-seller Hindenburg and the Congress party. Last year, around 500 employees had also written to the finance ministry accusing the top management of a toxic work culture.
Specialised funds
Sebi on Thursday came out with a regulatory framework for Specialized Investment Funds (SIFs) requiring a minimum investment of ₹10 lakh across all strategies.
The new framework will be applicable from April 1, the Securities and Exchange Board of India (Sebi) said in its circular.
The SIF has been introduced to bridge the gap between mutual funds and PMS in terms of portfolio flexibility. Under the framework, investors are required to invest
at least ₹10 lakh across all SIF strategies. This rule does not apply to accredited investors.
Investors can use SIP, SWP and STP (systematic transfer plan), but total investments must remain above ₹10 lakh. If the investment value falls below this threshold due to market decline, the investor can only redeem the full remaining amount.
MF funds
Sebi on Thursday also made it mandatory for asset management companies to deploy money collected from investors through new fund offers (NFOs) within 30 days from the date of allotment of units.
At present, there is no time limit for deployment of funds.