Sebi tweaks rule for hiring of executive directors

To encourage internal talent, markets regulator Sebi has decided to fill two-third executive director posts from within the organisation.

The remaining one-third will be filled up by deputation/ contract. Sebi has six EDs currently and is planning to increase the strength.

Earlier, 50 per cent of the total posts of executive directors had to be filled on the basis of internal candidates and the rest were to be recruited from outside the organisation.

"Two-third of the total posts from internal candidates and the remaining one-third to be filled up by deputation/ contract," Securities and Exchange Board of India (Sebi) said in a notification dated May 17.

In case of non-availability of talent in any category -- internal and deputation/contract -- the post may be filled from other categories, it added.

Now, the new selection committee would comprise two external experts nominated by the Sebi's chairman aprt from others. Earlier, it consisted of two board members, apart from the Sebi chief.

The new rules would become part of Sebi (employees' service) regulations. An employee association of Sebi, representing over 600 people, had recently sought the removal of a provision in their service rules that allowed the regulator to hire 50 per cent of its EDs on deputation, contract from outside the organisation.

In December last year, Sebi had said it will not conduct interview and group discussion for recruiting secretarial staff and accounts as well as library assistants. Following this, these positions will be filled only through written examinations.

"Interview and/or group discussion shall not be conducted for the purpose of recruitment of whole time employees other than officers," Sebi had said. The regulator has classified whole-time employees as secretarial staff, accounts assistants and library assistants. Prior to that, Sebi used to conduct interviews and group discussions for recruiting these staffs.