Department of Economic Affairs Secretary Shaktikanta Das to be government nominee on Sebi board

NEW DELHI: The government is set to step up its engagement with Sebi, keeping in mind the market regulator's greater role after taking charge of the commodities markets as well following the merger of Forward Markets Commission with it.

The finance ministry has appointed economic affairs secretary as its nominee on the market regulator’s board.

At present, finance ministry is represented by joint secretary in-charge of capital markets on the board. Shaktikanta Das is at present the secretary in the Department of Economic Affairs.

The ministry's representation to the board is being upgraded,” said a senior government official, privy to the development.

A notification to this effect is expected shortly.

Financial markets reforms tops ministry's agenda, which has called an interaction with both foreign and domestic market participants. The elevation of North Block’s engagement with the markets watchdog is being seen as a step in that direction. Development of fund management industry, deepening of corporate bond market, making it easier for foreign and domestic investors to participate in capital markets, drawing retail investors to the markets are some of the key issues expected to figure in Tuesday's meeting. The ministry is keen to work closely with the regulators as it prepares for next phase of financial sector reforms, which seems to have prompted the move. Shaktikanta Das took over as the economic affairs secretary on September 1, succeeding Rajiv Mehrishi who was to retire on August 31 but was appointed as Home Secretary with two years fixed term.

The previous United Progressive Alliance government had upgraded finance ministry's nominee to the Securities and Exchange Board of India board soon after P Chidambaram returned to the finance ministry in 2012. The economic affairs secretary was nominated to the board in place of joint secretary capital markets. The current government had reverted to earlier practice. The ministry had also in a surprise move in June this year nominated additional secretary, department of economic affairs to the RBI board in place of secretary. At present, the market regulator’s board is chaired by U K Sinha. It has Rajeev Kumar Agarwal, Prashant Saran and S Raman as whole-time members, R Gandhi, deputy governor RBI and Arun P Sathe as part time members.