U K Sinha, Chairman of UTI Mutual Fund, is being considered by the government for appointment as Chairman of the Securities and Exchange Board of India (SEBI), according to reports.
Sinha had not applied for the position that falls vacant when the incumbent SEBI Chairman C B Bhave’s three-year term comes to an end in February 2011, but the search panel headed by Cabinet Secretary K M Chandrasekhar has included his name in a short-list of candidates to be called for interview next month, Business Standard reported on Monday. Bhave’s successor will get a five-year term.
In 2008, Bhave was chosen to head the regulatory body even though he had not applied for the position. This time around it is the turn of Sinha, who was contender for the position in 2008. Both Bhave and Sinha are former bureaucrats.
Sinha was recently chosen chairman of the industry body, the Association of Mutual Funds in India (AMFI).
Media reports suggest that R Bandyopadhyay, secretary in the ministry of corporate affairs, and the Reserve Bank of India (RBI) Deputy Governor, K C Chakrabarty, are among the candidates who will be interviewed by the ministry to succeed Bhave. O P Bhatt, the chairman of public sector State Bank of India too was in the contention but has reportedly opted out of the race for the position.
Sinha, like a few other mutual fund CEOs, has been vocal about his concerns over SEBI’s decision to scrap entry loads. The appointment of Sinha as Chairman of SEBI might raise expectations of a roll-back of the ban on entry load or announcement of a measure that will boost revenues of distributors. Many in the mutual fund industry would be praying for his appointment!
