The government on Friday reduced the term of Ajay Tyagi, Chairman-designate of the Securities and Exchange Board of India, by two years.
Tyagi, who will take over as SEBI chief next month, will now have a term of three years, and will be eligible for an extension.
In its earlier order on February 10, the Appointments Committee of the Cabinet had appointed Tyagi as SEBI chief, “for a period not exceeding five years or till the age of 65 years or until further orders, whichever is the earliest.”
Government sources said this is in line with the earlier practice where the SEBI chief is selected for a period of three years. The government can later choose to extend the appointment by another two years.
An officer of the Indian Administrative Service of the 1984 batch from the Himachal Pradesh cadre, Tyagi, 58 will be taking over from current incumbent UK Sinha, whose term comes to an end on March 1.