The Indian government has extended the term of Securities and Exchange Board of India Chairman Ajay Tyagi by six months, according to a notification by the Ministry of Finance.
Tyagi's term was due to be over at the end of February. He was appointed for an initial period of three years in March 2017 and is eligible for an extension of two years.
However, doubts were cast over his extension after the government decided to call for a fresh selection process by issuing an advertisement on Jan. 24. SEBI received two-dozen applications for the post of the market regulator's chairman, sources told PTI on Monday. These included two whole-time members of SEBI, a couple of serving and retired bureaucrats, but not outgoing Tyagi.
According to the procedure for appointment of heads of regulatory bodies, candidates are shortlisted by the Union Cabinet's Financial Sector Regulatory Appointments Search Committee headed by the cabinet secretary.
The shortlisted candidates are then interviewed by a panel comprising the economic affairs secretary and three external members having domain knowledge. Based on the interaction, FSRASC recommends the name to the Appointments Committee of Cabinet headed by Prime Minister Narendra Modi for approval.
(With inputs from PTI)
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