Government Invites Applications For New SEBI Chairman As Ajay Tyagi’s Term Is Set To End
The finance ministry has invited applications to appoint the next chairman of Securities and Exchange Board of India to succeed Ajay Tyagi, whose three-year term comes to an end in February.
Tyagi, a 1984 batch IAS officer of Himachal Pradesh cadre, was appointed as SEBI chairman on Mar. 1, 2017, for the period of three years. It was widely expected that Tyagi would get at least two years' extension given his stellar performance on the job.
The public notice dated Jan. 24 inviting application from eligible candidates indicates that the government in not inclined to do so.
Applications of eligible candidates in prescribed proforma along with attested copies of annual confidential report for the last five years, vigilance clearance and no penalty and integrity certificate in case of serving government employees should reach on or before Feb. 10, according to the public notice issued by finance ministry's economic affairs department.
The government had given extension to UK Sinha for three years, making him the second longest-serving SEBI chairman.
In the case of Tyagi, the government issued the appointment notification twice. According to the first notification issued on Feb. 10, 2017, Tyagi, the then additional secretary (investment) in the department of economic affairs, was appointed the SEBI chairman for a period not exceeding five years or till the age of 65 years or until further order, whichever is earlier. Subsequently, another notification curtailed his appointment to an initial period of three years.
Since age is on his side, Tyagi can apply for the job again. However, this will be considered fresh appointment and not an extension.
According to the procedure for the appointment of regulators, the candidates will be shortlisted by the financial sector regulatory appointments search committee headed by the cabinet secretary.
The shortlisted candidates are interviewed by the panel comprising of the economic affairs aecretary and three external members with domain knowledge. Based on that interaction, FSRASC recommends name to the appointments committee of the cabinet headed by Prime Minister Narendra Modi for approval.