Bhave not to oversee NSDL investigation: govt

The government has decided to rescue Sebi Chairman designate C B Bhave from proceedings issued against National Securities Depository Ltd (NSDL) by the market regulator, Securities and Exchange Board of India.

A late Friday evening release from the finance ministry said the Centre has decided to put in place a mechanism to oversee the conduct of these proceedings and has advised the Sebi board that in order to ensure objectivity in the handling and conduct of these pending proceedings, these matters be handled by a team of non-whole time members of Sebi who were not party to the initiation or processing of such proceedings.

Neither Bhave, who was heading NSDL, nor the nominee of the ministry of finance on the Sebi board will be involved in this special arrangement.

These proceedings will be overseen by a three-member team comprised of part-time members of the board. The team will associate an eminent legal expert for professional advice.

Bhave's appointment as Sebi chairman was announced on February 15. He will take over on completion of the term of incumbent M Damodaran.