Friday, 4 November 2011

#SupremeCourt to look into the issue of amendment in rules for appointing members of SEBI

The Supreme Court has decided to look into the issue of amendments in the rules governing the appointment of members to the Securities and Exchange Board of India.

A PIL challenging these appointment had recently been filed in the apex court. The court earlier had asked the petitioners to withdraw the petition and refile it without allegations against Union finance minister Pranab Mukherjee.

The PIL, filed by retired air marshal S. Krishnaswamy and others, also sought to annul the appointment of U.K. Sinha as SEBI chairman.

The amendment allowed Mukherjee toappoint two members “of his own choosing”.

The petitioners said this would compromise SEBI’s functioning as its top officials need to be experts with requisite qualifications, which were not prescribed by the amendment.

A bench headed by Chief Justice S H Kapadia posted it for further hearing after Senior Advocate Gopal Subramanium started his arguments in the case. The matter shall be heard on November 21st.

SEBI has been surrounded by controversy recently. Former SEBI board member K.M. Abraham wrote a letter to Prime Minister Manmohan Singh alleging irregularities.

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