The appointment of a full-time CVO is expected to keep a check on the dealings of the officials of the securities market regulator of the country.
Realising the sensitivity of its business and the need to keep a check on its officials and their dealings, markets regulator, SEBI, plans to appoint a full-time chief vigilance officer (CVO). The professional will be responsible for detecting and punishing malpractices within the organisation.
The position of the CVO will be equivalent to that of an executive director in terms of pay and benefits. Yet, this post would not add to the existing sanctioned number of posts (nine) for executive directors in SEBI.
The board of the Securities and Exchange Board of India (SEBI) has already approved a proposal in this regard. Simultaneously, the chief vigilance commission has also advised that considering the dealing of SEBI with sensitive cases, a full-time CVO may be appointed.
At the same time, experts are of the view that SEBI, as a regulator, is unique and is more likely to be exposed to vigilance-related issues in future, which is why the need for a chief vigilance officer.
Since SEBI is considering external candidates for the post, the organisation will soon release an official advertisement inviting applications for the position of CVO.
Being a small organisation with a strength of about 800 employees, SEBI has had a part-time CVO ever since its inception, who handles some other responsibilities as well along with the vigilance function.
Historically, the CVO of SEBI has always reported directly to the chairman or to a full-time member—right now, the vigilance function is reporting directly to SEBI’s chairman.
The regulator, in 2014, had appointed Gyan Bhushan as its part time CVO, replacing R K Padmanabhan, whose role had come under the scanner of CBI with regard to an inquiry in connection with the purported weakening of a case against promoters of the erstwhile Bank of Rajasthan. The matter was later taken over by ICICI Bank.