Sebi to interview external ED applicants

The Securities and Exchange Board of India (Sebi) is planning to appoint two new executive directors (EDs).

According to sources, 20 candidates have been lined up for a final interview scheduled on Thursday.

These would be the first two external appointments since a new appointment rule has been implemented.

According to the new rule, of the nine ED positions, six would be taken up by Sebi staffers, while the rest would be a lateral entry or on deputation basis. In April, the markets regulator had increased the number of ED posts to nine from eight.

Sources say a lot of applications have come from the income-tax department, banks and academics. Some of them are also from other regulatory bodies.

In June, the watchdog had promoted two employees — Nagendra Parekh and Amarjeet Singh — to the post of ED. Both of them were chief general managers.

The seven EDs at present are S V Murali Dhar Rao, foreign portfolio investors and collective investment schemes; S Ravindran, S K Mohanty and Amarjeet Singh handle different verticals of the corporation finance department. P K Nagpal looks after the human resource department, while Ananta Barua handles the enforcement and adjudication department. Parekh heads the surveillance department.

The move follows Sebi staffers lobbying for more internal promotions. They had even moved the Bombay High Court in this regard. However, the court had dismissed the petition, observing that the regulator has the power to make external appointments.

On April 11, Sebi Employees' Association had sought review of a rule stating the regulator had to recruit half of the EDs from outside.