New Delhi: A bill to amend the SEBI Act to replace the recent Ordinance to widen existing norms related to selection of the presiding officer of Securities Appellate Tribunal (SAT) was introduced in Parliament on Tuesday.
The SEBI Amendment Ordinance 2013 was promulgated on January 21 in the wake of difficulty in filling up vacant posts of presiding officer in the SAT, a statutory body set up to hear appeals against orders passed by the Securities and Exchange Board of India (SEBI).
Finance Minister Namo Narain Meena introduced the SEBI (Amendment) Bill 2013 in the Rajya Sabha. The bill seeks to replace the Ordinance.
As per the statement of objects and reasons of the amendment Bill, the eligibility criteria for selection of a person for the post of presiding officer has been enlarged through an Ordinance as there was urgent need to fill up the vacant post of president officer of the SAT.
Earlier, those persons were qualified for the post of presiding officer of the SAT, who were sitting or retired Judge of the Supreme Court or a sitting or retired Chief Justice of a High Court.
The Ordinance was brought to allow those persons who are sitting or retired Judge of a High Court with a minimum seven years service as a Judge of High Court.
The post of presiding officer of the SAT has been lying vacant since November 29, 2011 due to non-availability of a suitable candidate. The absence of Presiding officer has been hampering the functioning of the SAT, which is important for smooth functioning of capital markets, the statement said.
SAT is required to have a presiding officer and two other members, to be appointed by the central government. A SAT member's tenure is of five years and he or she is eligible for re-appointment, subject to a maximum age of 62 years.