Sebi tried in earnest to resolve NSE case: Ajay Tyagi
Premium- ‘It was a complex matter. We came out with orders within our remit and power’
Mumbai: Outgoing chairman of Securities and Exchange Board of India Ajay Tyagi on Wednesday addressed the criticism the regulator received on its recent order against the National Stock Exchange.
“I want to say that Sebi tried in earnest to resolve NSE colocation case and governance lapses at the exchange," he said in a press conference after handing over charge to Madhabi Puri Buch, the new chairperson of Sebi.
“It was a complex matter. We came out with orders within our remit and powers," he added.
Tyagi, a 1984 batch IAS officer, was appointed as the chairman on 1 March 2017 and served for five years. He was eligible for another extension but the finance ministry chose to replace him with former banker Buch.
It is Sebi’s February order on the NSE that may have scuttled Tyagi’s chances to stay on. The order, around hiring irregularities and governance lapses at the NSE, attracted a fair bit of criticism—Sebi imposed fines and bans that were far smaller compared to punitive actions taken in other cases. The order also failed to identify an unknown third person who received the exchange’s data from former chief executive Chitra Ramkrishna.
“Covid also delayed the latest order against NSE. May be we did not do enough and missed something but let other authorities do what they have to," said Tyagi former, Sebi chairman.
“All that has come out in public domain so far on NSE case is due to Sebi," he added.
“We have had nothing to hide, job has been objective. Never a dull day on job at Sebi. Regulatory sides enforcement and clearing backlog of cases needs work," he said.
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On the issue of making splitting of chairman and managing director post at listed companies mandatory he said that at one point one has to be practical and cannot be a purist since 46% were still to comply.
“We have to live in a practical world and can push only to an extent. Voluntary has been down with the hope that shares holders and directors will push for it," he said.
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