A week after announcing the appointment of Ajay Tyagi as the next SEBI chief, the government on Friday cut down tenure of the SEBI Chairman-designate from 5 years to 3 years.
This is the first time when the government slashing down tenure of a SEBI chief. Ajay Tyagi is will take charge as SEBI chairman on March 2 when UK Sinha retires.
In doing so, the government has tried to align the tenure of SEBI chairman with that of Reserve Bank of India Governor. In the past the market regulator had also suggested removal of age restriction for the top job.
“A shorter tenure makes more uncertainty in the system. Such a large organization needs time to understand and three years tenure is too small,” a former SEBI official told Chillicious on condition of anonymity.
The 58-year-old 1984-batch IAS officer of Himachal Pradesh cadre is presently posted as Additional Secretary (Investment) in the Department of Economic Affairs.
The Appointments Committee of the Cabinet, headed by Prime Minister Narendra Modi, had on February 10 approved Tyagi’s appointment for a period not exceeding five years or till the age of 65 years, as per an order issued earlier by the Personnel Ministry.
Tyagi, who hails from Uttar Pradesh, is a Post Graduate in Economics. He was Joint Secretary in Ministry of Environment, Forest and Climate Change before joining Finance Ministry on November 1, 2014 as Additional Secretary.
For a short while, he was also on the board of Reserve Bank of India (RBI).