The Supreme Court today issued a notice to the centre on a PIL challenging the power of the finance minister to nominate two members in the search and selection board for appointment of SEBI chairman and full time members.
A bench headed by S S Nijjar, however, refused to stay Rule 3 (5)(e) of Securities and Exchange Board of India (SEBI) (Terms and Conditions of Service of Chairman and Members) Rules, 1992, under the which the finance minister can nominate two members.
The order of the court came on a petition filed by former IPS officer Julio Ribeiro and other members of civil society alleging that the rules framed by the government were in contravention of the SEBI Act.
Ribeiro had earlier also approached the apex court challenging the appointment of U K Sinha as SEBI chairman on the same ground, but the court had however, refused to entertain his plea on the ground as it found the allegations levelled in the petition of personal nature.
In a fresh PIL, Rebeiro dropped all those allegations and challenged only the rules framed by the government.
The apex court had on 21 November declined to entertain a plea questioning the appointment of Sinha as SEBI chairman, saying it was aimed against an individual under the garb of raising legal and constitutional issues.