The Hindu Business Line : SEBI's second rung leadership slots vacant

THE Securities and Exchange Board of India is left with no one to head the primary markets, FIIs, mutual funds and even the investigation and surveillance functions. The second tier of the capital market regulator has been entirely wiped off, with the last remaining whole-time member putting in his papers.

Departments including market intermediaries' regulation and supervision, derivatives and new products, enforcement, legal affairs, and research, among others, have been rendered headless. The enquiries and adjudication departments have been realigned to report directly to the chairman.

Though SEBI has not officially announced it, it is learnt that whole-time member Mr A.K. Batra has resigned. This leaves all three positions of SEBI's whole-time members vacant.

Mr Batra, who has been on leave for the last few weeks, has put in his papers on health grounds, confirmed a SEBI source. His term was due to end by August 2005.

Mr T.M. Nagarajan, the other whole-time member of the market regulator, retired earlier this year.

Added to this, the tenure of the Chairman, Mr G.N. Bajpai, is also due to end in February 2005. This leaves SEBI with virtually no one at the top.

The effect of this attrition would be most felt in the orders that are pending to be passed by SEBI.

The chairman and whole-time members are empowered to give an opportunity of hearing and pass general or specific orders in order to ensure investor protection. The SEBI Act provides for two members from officials of the Finance Ministry, one member from the Reserve Bank of India and five other members, of which at least three must be whole-time members. Replacements for the position of two whole-time members that remained vacant for over a year and three months, respectively are yet to come through.

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SEBI's second rung leadership slots vacant — Last whole-time member A.K. Batra quits