The government is veering to the conclusion that some of the top officialsin all these institutions would have to step aside to facilitate thecleaning-up process. Sources said the top officials being replaced at theseinstitutions may be asked to proceed on leave or quit. With the governmentlooking into the functioning of these three institutions in detail followingthe latest scandal involving the banking and stockmarket systems, it is nowbelieved that a thorough overhaul of the top brass has become inevitable.

On the Sebi front, its chairman DR Mehta may have to make way for someoneelse, while Mr CB Bhave, former Sebi senior executive director who is nowthe managing director of the National Securities Depository Ltd (NSDL), isalso being mentioned as someone who will find place on the Sebi board as anumber two to the chairman. Mr Bhave is known to be a no-nonsenseadministrator with an excellent track record.

Sources said the clean-up at Sebi will not be confined to Mr Mehta. At leasttwo executive directors and some division chiefs may also bereplaced.Another major move being considered is to relieve UTI chairman PSSubramanyam and make UTI Bank chairman PJ Nayak the acting chairman of UTI.Mr Nayak, a former executive trustee of UTI, is likely to be asked to holdcharge of the institution till a thorough probe is completed into itsfunctioning.

On the RBI front, there is understood to be a move to replace its deputygovernor (banking supervision) SP Talwar with Mr Devi Dayal,currentlyspecial secretary (banking) in the finance ministry. Both Mr Dayaland Mr Talwar are due to retire in the next few months. Mr Dayal hasexperience in dealing with banking issues and is being seen as the idealchoice for the assignment.

The government is believed to be worried about the manner in which bothregulators have been virtually caught napping while the entire marketmanipulation and Madhavpura scam were taking place. While criticism has beenmounting against Sebi for failing to nab arrested stockbroker Ketan Parekhwhen he was ramping up prices and creating an artificial hype in scores oftechnology stocks, RBI is facing flak for the Madhavpura scandal, where thebank and Parekh together caused a Rs 137 crore hit to another bank, BoI.This apart, other coop banks have also figured in connection with thebullion scandal and, together, the entire financial sector is now in a stateof turmoil.

CBI probes UTI deals with KP favourites
New Delhi, April 2: The CBI is looking into complaints against UTI foralleged nexus with Parekh and some corporates. Government sou-rces told TheFinancial Express the complaints pertained to large scale investments byUTI through its schemes in shares which were known to be favourites ofParekh. The complaints were made against UTI top brass including its chiefPS Subramanyam."CBI is gathering information on UTI's deals in the market inthe last two years to ascertain whether there was a close link between UTIand some brokers. Records seized from Parekh's premises will also bescrutinised," a source said.

Guilty in RBI, Sebi won't be spared -- FM
New Delhi, April 2: Voicing his disgust over the manipulation of stockmarkets, Union Finance Minister Yashwant Sinha on Monday night pledged totake firm action against anyone in the Reserve Bank, Sebi, banks and thebroker community found responsible for the recent scandals that have shakenthe stock markets.

"I am not concerned by the ups and downs in the market. But I am disgustedby manipulations.

``I am determined not to spare anybody in the RBI, Sebi, banks or the brokercommunity who is found guilty," Sinha said in an interview on Aaj Tak TVchannel.