Ramesh Abhishek gets three-month extension as Forward Markets Commission chairman

MUMBAI: The ministry of finance has extended the term of the Ramesh Abhishek, chairman, Forward Markets Commission (FMC), a third time for another three months or until it fills up the post, whichever is earlier. TV Somanathan, an IAS officer from the 1987 batch of the Tamil Nadu cadre, was supposed to have succeeded Abhishek, whose second extension ended on January 8. However, there is still no clarity on his appointment or its timing.

Somanathan was the top contender for the FMC chairman’s post and was trailed by MS Sahoo, former Sebi member, and Nagendraa Parakh, member, FMC.

"The ministry needs more time to fill up the post (FMC chairman) and as a consequence has asked Abhishek to continue so that the post should not remain vacant," said a finance ministry official.

Somanathan is a joint secretary, with the ministry of corporate affairs, currently on deputation to the World Bank. In the past, he served as deputy secretary in the finance department of Tamil Nadu and in the planning department at the state level.

Abhishek, a 1982 batch IAS officer from the Bihar cadre, became the FMC chairman on September 21, 2012. His term was first extended on July 8, 2014 and again on October 8 last year. FMC under Abhishek has overseen the recovery of Rs 5,600 crore unpaid dues on spot exchange NSEL to more than 13000 investors, and has instituted a number of changes to strengthen the market and increase transparency on it.

Among the important changes undertaken during his tenure are abolishing the concept of anchor investor for commodity exchanges and disallowing private entities from owning over 5% in a commex. These regulations were done in the aftermath of the NSEL scam, which surfaced in July 2013.