Ten-fold hike in Sebi part-time members’ remuneration

Thursday, Jan 14, 2016,16:56 IST By Metrovaartha A A A

New Delhi | The remuneration of all part-time Sebi members has been increased to Rs 10,000, a ten-fold rise from the present Rs 1,000, for attending each meeting of the market regulator.

The Securities and Exchange Board of India has four part-time members at present – Economic Affairs Secretary Shaktikanta Das, Corporate Affairs Secretary Tapan Ray, RBI Deputy Governor R Gandhi and renowned lawyer Arun P Sathe.

As per existing rules, part-time members are entitled to a fee of Rs 1,000 for attending each meeting of the Board.

Now, the amount has been increased to Rs 10,000, official sources said.

A part-time member while on tour (including the journey undertaken to attend a meeting of the Board) is also entitled to travelling allowance and daily allowances at the same rates and scale as are applicable to an Additional Secretary to the government of India.

The move to increase the remuneration comes at a time when the government is searching for the next Chairman of SEBI in place of incumbent U K Sinha, whose tenure is scheduled to end on February 17.

According to an advertisement seeking applications for the market watchdog’s chief, the Chairman would have an option to receive pay as admissible to a Secretary to the Government of India, or a consolidated salary of Rs 4.5 lakh per month.

The Finance Ministry has reconstituted the search-cum- selection panel which would now include a representative from the Prime Minister’s Office.

While the panel, headed by the Cabinet Secretary, will continue to have Economic Affairs Secretary, the provision of the Finance Minister nominating up to two persons as members has been done away with.

Members of the revamped panel will accordingly include Additional Principal Secretary to the Prime Minister, Economic Affairs Secretary and three outside experts of repute (who are to be nominated by the central government from a panel of experts in the fields of finance, economics, law, public administration, financial markets and other related subjects maintained by it).

Earlier, the Committee did not have any member from the PMO, while there were two experts nominated by the Centre. The earlier rules also provided for appointment on the panel of other person, if any, not exceeding two, as the Minister of Finance may nominate.

In case of selection of Whole Time Members for Sebi (Securities and Exchange Board of India), the Chairman of the regulatory body would continue to remain on the panel.