Bhave Takes Charge As SEBI Chief

MUMBAI: C B Bhave on Monday took charge of the the Securities and Exchange Board of India (SEBI) as its Chairman.

The outgoing Chairman, M Damodaran, congratulated Bhave on the latter's assuming office at the SEBI headquarters here.

Bhave has been appointed Chairman for a period of three years.

Bhave refused to speak to reporters about his future plans. "No comments", he told reporters when asked about his agenda for SEBI in the coming days.

SEBI is expected to hold a formal press conference during this week, the first for Bhave as its Chairman.

Bhave has rejoined SEBI after 12 years. In 1996, Bhave quit SEBI, to create India's first share depository, the National Securities Depository Limited (NSDL).

Better known as Chandu Bhave in Mumbai's financial world, he is no stranger to SEBI, having worked in the organisation between 1992-96.

The 1975-batch IAS officer of the Maharashtra cadre was the Executive Director in charge of the secondary and later the primary markets between 1992 and 1996.

He also commands respect in the financial sector, for both his integrity and professional competence.

Bhave will need to take some tough decisions in the coming months as the markets are going through their most volatile phase ever, and there are growing concerns of malpractices.

Bhave Opts Out Of All NSDL Probes

NEW DELHI: CB Bhave, whose appointment as the new SEBI chief was formally announced on Friday, has recused himself from all proceedings initiated by the market regulator against National Securities Depository Ltd, the agency he headed since its inception in 1996.

In a statement, the finance ministry said that the government has accepted Bhave's request and has asked the Sebi board to allow a team of part-time members, who were not party to the initiation or processing of such proceedings, to deal with these issues.

"Neither Bhave who was heading NSDL nor the nominee of the ministry of finance on the SEBI board will be involved in this special arrangement. These proceedings will be overseen by a three member team comprised of part time members of the board. The team will associate an eminent legal expert for professional advice," the finance ministry press release said.

Bhave, who has been given a three-year term from the date he assumes office, ran into trouble with SEBI almost two years ago after the infamous IPO scam involving Roopalben Panchal surfaced.

Panchal and her associates had managed to corner large chunks of IDFC and Yes Bank shares by opening multiple demat accounts using photographs of large number of people. On listing, the shares were sold at a premium to the issue price.

Subsequently, SEBI, in a disgorgement order, 10 entities, including NSDL, to return around Rs 116 crore to those who did not get shares.

The order was quashed by Securities Appellate Tribunal. In April 2006, SEBI had accused NSDL of "contributory negligence towards opening of fictitious demat accounts and lack of oversight over its depository participants".