In a rare development, Ms. Shikha Gupta has opted out of the Executive Director role at SEBI after initially accepting the offer which was offered during the tenure of the former chairperson Ms. Madhabi Puri Buch.
In a coverage by Ms. Reena Zachariah in the The Economic Times titled โ๐๐ฉ๐ช๐ฌ๐ฉ๐ข ๐๐ถ๐ฑ๐ต๐ข ๐ฐ๐ฑ๐ต๐ด ๐ฐ๐ถ๐ต ๐ฐ๐ง ๐๐ฆ๐ฃ๐ช ๐๐น๐ฆ๐ค๐ถ๐ต๐ช๐ท๐ฆ ๐๐ช๐ณ๐ฆ๐ค๐ต๐ฐ๐ณ ๐ณ๐ฐ๐ญ๐ฆโ, Mr. Sumit Agrawal, Founder & Managing Partner at Regstreet Law Advisors, offers clear explanation of how these appointments work wherein he has stated that:
โ๐๐ฏ๐ญ๐ช๐ฌ๐ฆ ๐๐๐๐ ๐ค๐ฉ๐ข๐ช๐ณ๐ฎ๐ข๐ฏ ๐ข๐ฏ๐ฅ ๐ธ๐ฉ๐ฐ๐ญ๐ฆ-๐ต๐ช๐ฎ๐ฆ ๐ฎ๐ฆ๐ฎ๐ฃ๐ฆ๐ณ๐ด, ๐ธ๐ฉ๐ฐ ๐ข๐ณ๐ฆ ๐ข๐ฑ๐ฑ๐ฐ๐ช๐ฏ๐ต๐ฆ๐ฅ ๐ฃ๐บ ๐ต๐ฉ๐ฆ ๐จ๐ฐ๐ท๐ฆ๐ณ๐ฏ๐ฎ๐ฆ๐ฏ๐ต, ๐ฆ๐น๐ฆ๐ค๐ถ๐ต๐ช๐ท๐ฆ ๐ฅ๐ช๐ณ๐ฆ๐ค๐ต๐ฐ๐ณ๐ด โ ๐ต๐ฉ๐ฆ ๐ฐ๐ฏ๐ฆ๐ด ๐ง๐ณ๐ฐ๐ฎ ๐ฐ๐ถ๐ต๐ด๐ช๐ฅ๐ฆ ๐๐๐๐โ๐ด ๐ช๐ฏ๐ต๐ฆ๐ณ๐ฏ๐ข๐ญ ๐ค๐ข๐ฅ๐ณ๐ฆ โ ๐ข๐ณ๐ฆ ๐ด๐ฆ๐ญ๐ฆ๐ค๐ต๐ฆ๐ฅ ๐ต๐ฉ๐ณ๐ฐ๐ถ๐จ๐ฉ ๐ข ๐ด๐ฆ๐ข๐ณ๐ค๐ฉ ๐ฑ๐ณ๐ฐ๐ค๐ฆ๐ด๐ด ๐ค๐ฐ๐ฏ๐ฅ๐ถ๐ค๐ต๐ฆ๐ฅ ๐ฃ๐บ ๐ต๐ฉ๐ฆ ๐ฉ๐ถ๐ฎ๐ข๐ฏ ๐ณ๐ฆ๐ด๐ฐ๐ถ๐ณ๐ค๐ฆ๐ด ๐ฅ๐ฆ๐ฑ๐ข๐ณ๐ต๐ฎ๐ฆ๐ฏ๐ต, ๐ธ๐ช๐ต๐ฉ ๐ต๐ฉ๐ฆ ๐ง๐ช๐ฏ๐ข๐ญ ๐ข๐ฑ๐ฑ๐ฐ๐ช๐ฏ๐ต๐ฎ๐ฆ๐ฏ๐ต ๐ณ๐ฆ๐ฒ๐ถ๐ช๐ณ๐ช๐ฏ๐จ ๐ข๐ฑ๐ฑ๐ณ๐ฐ๐ท๐ข๐ญ ๐ง๐ณ๐ฐ๐ฎ ๐ต๐ฉ๐ฆ ๐๐๐๐ ๐ฃ๐ฐ๐ข๐ณ๐ฅ.โ
Mr. Agrawal is also of the view that the SEBI Chairman exercises overall supervisory and administrative authority under the SEBI Act.
The regulatory framework permits external appointments to Executive Director positions when suitable internal candidates are not available. According to the Schedule to the SEBI (Employees’ Service) Regulations, 2001, two-thirds of these posts are to be filled by internal candidates, while up to one-third, subject to a maximum of three positions may be filled through deputation or contractual appointments.
