FM assures faster replacement of Sebi board members

Our Markets Bureau

Mumbai, Sept 12: Finance minister Yashwant Sinha on Wednesday appeared to be endorsing the Securities and Exchange Board of India’s (Sebi) need of adding two more members to strengthen the regulator’s board, which currently has just three members including chairman DR Mehta.

The need arises after the departure of former full time member Prof JR Varma and soon-to-retire Aditya Birla group chairman Kumar Mangalam Birla. Because of his preoccupations, Mr Birla has not been able to attend several Sebi board and other important meetings.

“The government has initiated a process to induct two members on the board to help the regulator to cope with growing responsibilities,” Mr Sinha said, adding, “the process of selecting the two members for the Sebi board to fill the vacancies was on.” He speaking on the sidelines of a function organised under the aegis of the Indian Bank’s Association.

The minister further added that the responsibilities of the regulator have grown manifold and amendment to the Sebi Act was necessary to expand its board.

Responding to this development, Mr Mehta said he was “very happy with the FM’s announcement”.

Speaking to The Financial Express, Mr Mehta said: “We have been asking the finance ministry about speedier filling of vacancies and it is good that Mr Sinha has endorsed our view which will help the regulator to perform better in the days ahead.” The vacancy arises from departure of full-time member Prof Varma was yet to be filled. Mr Birla’s tenure ends by this month-end and that will also have to filled quickly.