Chief of Pension Fund Regulatory and Development Authority Yogesh Agarwal on Wednesday resigned from his post despite having a term of another one and a half years left to go.
“The department of financial services, ministry of finance has informed that Yogesh Agarwal, chairman PFRDA has demitted office..on the forenoon of 13 November, 2013,” said an official release.
As a temporary arrangement, Anup Wadhawan, joint secretary in the department of financial services has been given concurrent charge of the interim PFRDA.
“Yes, I have put in papers. I will not comment on reasons,” Agarwal said outside the finance ministry to reporters.
Agarwal's sudden exit comes after he was excluded from the selection committee to appoint two whole time directors of the PFRDA. At the time, he had said he did not know the reasons for the exclusion.
The panel members include economic affairs secretary Arvind Mayaram, financial services secretary Rajiv Takru, department of personnel and training aecretary Syamal Kumar Sarkar, chairman of the Insurance Regulatory and Development Authority, TS Vijayan, former LIC chairman SB Mathur.
A person close to the developments said “The interim PFRDA was functioning under an administrative order. Now with PFRDA Act, Agarwal's appointment may not be valid anymore”. The pension regulator has already become a signficant presence in the Indian financial sector. The sector has already logged assets under management of close to $6 billion.
The finance ministry is likely to start the selection process for a new pension regulator soon. Sources said that top contenders could include finance secretary RS Gujral and revenue secretary Sumit Bose as well as some retiring bank chiefs like KR Kamath of PNB.