Financial Daily from THE HINDU group of publications
Friday, Feb 08, 2002
Financial Daily from THE HINDU group of publications Friday, Feb 08, 2002 |
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Regulatory Bodies & Rulings Markets - Regulatory Bodies & Rulings Better pay on cards for SEBI boss Shaji Vikraman
NEW DELHI, Feb. 7 THE Finance Ministry has mooted a proposal to delink the pay of the Chairman of the Securities and Exchange Board of India (SEBI) from that of a Secretary to the Government of India. The proposal is aimed at attracting professionals to head the capital markets regulator. Currently, the pay of the SEBI Chairman is linked to that of a Secretary to the Central Government. The plan now is to empower the SEBI board to clear the pay package of the Chairman, taking into account market realities and the need to attract professionals from the capital market for the job. The Government is planning to amend the SEBI (Terms and Conditions of Service of Chairman and Members) Rules, 1992 to ensure this, according to officials. The changes can be carried out through an executive order. The changes, if carried out in the case of the capital markets regulator, could well be replicated for a few other regulatory agencies. Earlier, when the service rules for those heading regulatory agencies were framed with the pay and rank being linked to that of a Central Government Secretary, it was perceived as a bureaucratic "sleight of hand'' to ensure a parking slot for either retired senior Government officials or those approaching retirement. Under the terms and conditions of service of the SEBI Chairman, almost all allowances and LTA are linked to that paid for a Secretary to the Government of India. It is not clear whether the proposed changes will impact on the selection of the new SEBI Chairman. The current Chairman, Mr D.R. Mehta, is due to retire in a fortnight. Although a list containing the names of a few professionals who could fit the bill had been forwarded to the Appointments Committee of the Cabinet (ACC), a final view was yet to be taken, according to the officials. The appointment of a professional to the post of the SEBI Chairman could well be the test of the Government's pronouncements of having in place independent and strong regulators, according to officials and capital market analysts. The need for a strong professional candidate assumed importance in the wake of the scams in the capital market and the challenges facing it, they added. Some senior bureaucrats are, however, pitching strongly for the job which will ensure them a five-year post -etirement tenure, according to the officials.
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