The central government is deliberating on a proposal to create a position of a fourth wholetime member (WTM) at the Securities and Exchange Board of India (Sebi).
Work load on existing members at the markets regulator has increased after the merger into it of the commodities market regulator, Forward Markets Commission (FMC). Sources say Sebi recently requested the Centre to consider an additional member on its board, to oversee commodity markets functions.
"The workload has increased manifold for top officials, especially with some positions vacant for quite some time in the recent past," said someone privy to the development.
If a new WTM position is created, sources say the regulator is keen on elevating an internal person. Among other things, the new member could also be assigned 'legal affairs' as a core portfolio.
The Sebi Act says the regulator can have five members on board, of which at least three shall be wholetime. At present, the various departments of Sebi are handled by three WTMs, who report to the chairman.
"Increasing the Sebi board size might need a change to the Sebi Act. However, if there is an urgent need for four WTMs, the government can replace on independent board member with a fulltime one," said a legal expert.
Presently, the Sebi board comprises eight people. There is a chairman, three WTMs, one independent member and one nominee each from the Reserve Bank of India, ministry of finance and ministry of corporate affairs.
Experts say more of top positions would help in quicker policy decisions, especially in the new areas, and reduce the burden on existing officials.
"Commodity market regulation is different from that in the securities market. There is need for a person with specialised skill sets for this section, which is evolving fast. This segment needs focus and expertise for betterment of the entire commodity space," said Abizer Diwanji, partner at consultancy EY India.
In September 2015, FMC was merged into Sebi. With this, Sebi had created a new commodity derivatives market regulation department and one for integrated surveillance. And, a separate team for handling collective investment schemes.
After getting powers of search and seizure, Sebi's day-to-day activities have increased but the personnel have not. The merger had brought only 15 employees of the former commodities regulator.