SEBI, which has been in existence for over three decades, will now have its first full-time Chief Vigilance Officer (CVO). The Prime Minister’s Office (PMO) recently cleared the name of Arti Chhabra Srivastava, a 1990-batch Indian Ordinance Factory Services officer, as SEBI CVO. The appointment was duly approved by the Central Vigilance Commission (CVC).

Questioning of SEBI officials by the CBI in the Saradha Chit Fund scam in 2014 saw the CVC highlighting the need for a full-time CVO for the regulator. Moreover, the CVC had also received a few complaints against SEBI officials with regard to their handling of investigations into a high-profile real estate company, which was under the scanner for disclosure-related violations. CBI is also probing SEBI officials in the algo trading scam.

Both SEBI and the Reserve Bank of India have appointed internal officials as CVOs so far. Former SEBI chairmen CB Bhave and UK Sinha gave the post to IPS officials who came on deputation and handled other jobs too. Current Chairman Ajay Tyagi choose to keep vigilance and internal inspection departments with himself after the earlier CVO came under the CBI scanner for dealings with market intermediaries.

CVOs are considered an extended hand of the CVC, which is tasked with detecting graft by officials holding public office.

The SEBI CVO will mainly keep tabs on its officials and detect and punish corruption and other malpractices. The CVO will also have to examine existing rules and procedures of the organisation to eliminate or minimise scope for corruption and malpractices.

Further, the CVO will ensure observance of rules by SEBI officials relating to annual property returns, gifts accepted, benami transactions and regarding their relatives employed in private firms or businesses.

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