C B Bhave to replace Damodaran as SEBI chief

Mumbai: National Securities Depository Ltd chairman Chandrasekhar Bhaskar Bhave will take over as the new chairman of the Securities and Exchange Board of India (SEBI) when the current chairman M Damodaran's term expires on February 17.

Although there was no official statement on the appointment of Bhave as the new SEBI chief, a notification on the appointment of the new SEBI chairman is likely soon.

Bhave had earlier served both in the finance ministry as well as the SEBI. The decision to appoint the NSDL chief is believed to have come after the finance ministry took up the issue with the Prime Minister`s Office.

Other names doing the rounds as possible successor to Damodaran included those of UTI Asset Management Company chairman U K Sinha, Canara Bank chairman M B N Rao and ministry of external affairs additional secretary J Bhagwati.

Damodaran took over as SEBI chairman in February 2005 for a three-year term and his term will expire on February 17, 2008.

Bhave's appoint came despite his own view that there could be conflicts involved with his candidature.

SEBI had issued orders against NSDL during the 2006 IPO price manipulation case. Sebi had also suggested a management overhaul at NSDL. NSDL, however, challenged the order before the Securities Appellate Tribunal (SAT) and won the round.

In fact, the search committee headed by the cabinet secretary had shortlisted a few other candidates for the job. The panel had also said current chairman M Damodaran can be eligible for reappointment.