Aiming to fill the crucial post of presiding officer (PO) of the Securities Appellate Tribunal (SAT) ? which has been lying vacant since November 2011 ? the Union Cabinet has approved a proposal to amend the Sebi Act to enlarge the eligibility criteria.
The SAT was set up to adjudicate upon appeals against the decisions of the Securities and Exchange Board of India (Sebi).
According to the new norm, a sitting or retired judge of a high court with a minimum seven years of service is also eligible to be appointed for the post.
The current norm ? Section 15M of the Securities and Exchange Board of India Act, 1992 ? specifies that a person shall not be qualified for appointment as the presiding officer of the Securities Appellate Tribunal, unless he is a sitting or retired judge of the Supreme Court or a sitting or retired Chief Justice of a high court.
The existing criteria made selection to the PO’s post difficult, finance minister P Chidambaram told reporters after the Cabinet meeting. The government had in September invited applications to fill the vacancy, but was unable to find a suitable candidate. The proposal to amend the Sebi Act was made by the Department of Economic Affairs.
?We have consulted the Chief Justice of India and decided to enlarge the eligibility,? Chidambaram said, adding ?We are hopeful that we can fill this vacancy quickly and ordinances will be promulgated and, then, the Chief Justice of India will be (requested) to suggest the name of the judge.?
The amendment to the Sebi Act, 1992, will be done on the lines of the approved Ordinance and a Bill will be introduced in the ensuing session of Parliament to replace the Ordinance with such modifications of drafting or consequential nature, an official release said. These steps will be done in consultation with the legislative department, it added.
With the decision taken on Thursday by the Cabinet, it is expected that it would be easier to fill up the vacancy, without diluting the expertise or experience required for the post, the release said. There are no financial implications of the proposal, it added.
