The Supreme Court issued notice to the Centre on a PIL challenging the Finance Minister’s power to nominate two members in the search and selection board for appointment of Sebi chairman and full time members.
A bench headed by S S Nijjar, however, refused to stay Rule 3 (5)(e) of Securities and Exchange Board of India (Sebi) (Terms and Conditions of Service of Chairman and Members) Rules, 1992, which empower the Finance Minister to nominate two members.
The court passed the order on a petition filed by former IPS officer Julio Ribeiro and other members of civil society alleging that the rules framed by the government were contrary to the Sebi Act.
Ribeiro had earlier also approached the apex court challenging appointment of U K Sinha as Sebi chairman on the same ground, but the court had refused to entertain his plea on the ground that the allegations leveled in the petition were of personal nature.
The petitioner later filed a fresh PIL dropping all those allegations and challenging only the rules framed by the government.