SEBI chairman UK Sinha’s tough job as market regulator has just got tougher. In the last two weeks the market regulator has witnessed the exit of its two senior whole time members M.S.Sahoo and K.M.Abraham. The two were handling sensitive and important portfolios of legal affairs, enforcement, market intermediaries supervision & regulation, and investigations & surveillance.
But the finance ministry which is responsible for nominating new members in SEBI, doesn't seem to be in a hurry or bothered about this posts lying vacant. Sources have told NDTV the finance ministry after months of deliberations is yet to make up its mind on finalising the potential candidates.
The moot question been asked is can the finance ministry afford to keep these sensitive postings vacant in SEBI when the market regulator is fighting high profile cases with corporates houses like Sahara and MCX-SX.
SEBI on its part also has been slow in finding replacements for the post of executive directors which also saw three senior officials, namely K.N Vaidyanathan, J.N.Gupta, Pradyna Saravade completing their two year tenure earlier this month and with one more official J Ranganayakulu completing his stint next month.
“Although the day to day work will not get affected with a strong workforce of 600 people, the policy making process will certainly be stopped. Also the delay in case becomes for a period of 1-2 months then it is a cause of worry. Currently don't think it's a case for alarm,” said Sandeep Parekh, Former ED, SEBI and Founder, Finsec Law Advisors.
It appears a case of finance ministry, which wants SEBI to ensure orderly functioning of capital markets, itself forgetting some of its corporate governance functions.SEBI chairman UK Sinha’s tough job as market regulator has just got tougher.
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