SEBI Looks To Prioritise Internal Promotions To Fill Vacant ED Positions | Profit Exclusive
NDTV Profit has learnt that discussions on this are likely in the next SEBI board meeting, scheduled on June 18.
The market regulator, the Securities and Exchange Board of India, is likely exploring prioritising internal promotions for higher posts, especially the post of executive directors, people in the know told NDTV Profit.
One of the sources that Profit spoke to also mentioned that these discussions are likely to be taken up in the next SEBI board meeting, scheduled to take place on June 18.
Additionally, there is also an employee association demand before the regulator to increase the number of ED positions at the regulator from 11 to 15, sources quoted above mentioned.
The SEBI Employees Association (SEA) also recently expressed its appreciation to the management for implementing various employee-friendly initiatives. In a communication on the subject of ED recruitment, the association acknowledged these steps as a positive development for the organisation’s workforce.
SEA pointed out that there are currently 11 executive director positions in SEBI, as approved by the board. Of these, three positions are filled through contractual or deputation appointments.
The association emphasised the need to prioritise internal promotions for these roles by Regulation 6(4)(a) of the SEBI Employees’ Service Regulations, which states that external candidates may only be considered if no suitable internal candidates are available.
SEA expressed concern over the fact that one ED post has remained vacant for more than two years due to the unavailability of a suitable external candidate.
The association noted that this is particularly disheartening, given that many highly qualified SEBI officers have been retiring at the Chief General Manager (CGM) level without the opportunity to advance to ED due to a lack of vacancies reserved for internal candidates.
It was further pointed out that while the number of ED posts was increased from nine to eleven in 2021, SEBI’s workforce has expanded significantly since then. With the addition of approximately 400 employees, the organisation now has more than 1,000 staff members.
Under current leadership, this number is expected to grow further. Despite this increase in staff strength, the number of ED positions has remained static, leading SEA to call for a reassessment and expansion of the ED cadre in alignment with organisational growth.
SEA underscored that SEBI possesses a deep bench of capable and experienced personnel who are well-suited for promotion to the ED level. It urged the Board to recognise and tap into this internal talent pool, rather than rely primarily on external recruitment or deputation.
In support of its stance, the association cited a recent Supreme Court judgement dated May 23, 2025, in Civil Appeal No. 13104 of 2024, where the Court noted that delayed promotions of cadre officers in the Central Armed Police Forces (CAPFs) can adversely affect morale.
The judgement emphasised that excessive reliance on deputations from other services, such as IPS officers, undermines the promotional prospects and motivation of internal candidates. SEA highlighted the relevance of this ruling to SEBI’s current recruitment practices and urged management to take cognisance of the court’s observations.
Post the requests of the employee associations, as per some sources, internal discussions were held at the regulator, with scope for further deliberations and discussions at the upcoming board meeting.
A senior official, speaking to Profit on the condition of anonymity, recalled that in the early days following the establishment of SEBI in 1992, several officials from the Income Tax Department were brought into the regulator, largely due to the limited staff strength at the time.
In fact, even positions below the executive director level were occasionally opened to external candidates. However, the official noted that the situation has evolved significantly. SEBI now has a strong internal talent pool capable of handling leadership responsibilities.
He further explained that while the service regulations earlier provided for about 50% of ED positions to be filled by external candidates, this practice was streamlined during the tenure of former Chairperson Ajay Tyagi, when it was decided that only three ED posts would be reserved for external or deputation-based appointments.
Currently, there is no regulatory mandate that requires external talent to be preferred for ED posts. In light of this, there is a growing demand within the organisation to formally recognise these changes and to promote deserving internal candidates to leadership roles, he said.
