Mumbai, January 2, 2017
SEBI is all set to address a key conflict of interest issue within the organisation that often irked the Central Vigilance Commission (CVC).
The regulator will appoint a full-time chief vigilance officer (CVO), whose only job will be to keep an eye on dealings of officials within the organisation. So far, SEBI only had a part-time CVO.
The post was mainly filled by a SEBI official but the regulator came under criticism for such a practice. Experts say, SEBI’s way of allocating the CVO post as a portfolio to its own official went against the norms of the CVC manual. According to CVC, the CVO in a regulatory organisation is an exclusive post and such an official handling any other work could lead to conflict of interest.
The CVO’s role in SEBI came under a cloud a few years ago when an IPS officer, who came to SEBI on deputation as executive director and handled various portfolios, was also made the CVO. The same official was later facing a CBI inquiry for mishandling one of the cases related to dealings by a company but could not be taken to task internally as he was also the CVO.
3rd Whole-Time Member
In another development Sanjeev Kaushik, a Kerala cadre IAS officer, was appointed SEBI’s third WTM. He will take charge on January 24. Kaushik is waiting to be relieved from his current posting at IIFCL, a source close to him told BusinessLine.
SEBI has also received government nod to appoint a fourth WTM, and will soon be issuing advertisements for the same.
[The Hindu Business Line]