Sebi Board Vacancies Analyzed

Key Points

• Frequent WTM vacancies slow Sebi’s investigations and policy changes.
• Lack of a full board impacts decision-making speed and continuity.
• Board vacancies complicate legal proceedings, requiring alternative approvals.
• Appointments are crucial for smooth operations and long-term strategy.
• Expert appointments need strong judicial, administrative, and legal skills.
• Timely appointments are vital to avoid delays and maintain momentum.

The Securities and Exchange Board of India (Sebi) is facing a problem: it doesn’t have enough people on its board to do its job effectively. Two key positions, held by Whole-Time Members (WTMs), are currently empty.

This isn’t a new situation. Sebi has struggled with vacancies for quite a while now, most recently with the departures of S K Mohanty and Ananta Barua in 2023. When members leave, it takes time to find replacements, and this slowdown can cause problems.

These WTMs are important because they help Sebi make decisions about how the stock market should work and also make sure companies follow the rules. When there aren’t enough people on the board, it can take longer to solve problems and create new policies. For example, in 2023, Sebi had to ask a court to help them make a decision because the board wasn’t fully staffed.

One of the reasons it’s taking so long to fill these positions is that it can take almost a year for new members to fully understand Sebi’s complex operations. The experts say that the next members should have strong skills in law, administration, and investigation. Sebi needs people who are trusted and dedicated.

Currently, the board includes Ananth Narayan G, who is serving until October 9, 2025, and Ashwani Bhatia, who will leave on May 31, 2025. The board also includes former members S Raman, G Mahalingam, Madhabi Puri Buch, and Ananta Barua. These members’ tenures have concluded, highlighting the constant need for skilled leadership within Sebi.

“Continuity at the Sebi board level is important as it supports both policy direction and adjudication of matters. Periods of vacancy, which have become more common in recent years, can affect the pace of decision-making and raise questions around continuity. Sebi’s professional staff ensures day-to-day functioning remains smooth, but the absence of a full board can still impact long-term policy momentum. It is also relevant to note that other board-level vacancies are expected within the next year, which makes timely appointments even more important,” said Sumit Agrawal, senior partner, Regstreet Law Advisors, and former Sebi officer.

“While whole-time members’ role is definitely a quasi-judicial one, it is equally important on the administrative and law-making front as well. So, a vacuum not only impacts enforcement but the overall administrative functions too. The idea of a quasi-judicial authority, as it exists today, has been a great pivot by Sebi to manage such externalities,” said Shruti Rajan, partner, Trilegal.

“With complex organisations such as Sebi, it takes nearly a year for the new members to understand (things). It may impact the continuity of critical cases. Sebi being an autonomous body, it needs people with stature, integrity, experience, commitment, and honesty,” said the expert quoted above.