The Securities and Exchange Board of India (Sebi) has demanded that the selection committee for the post of its chairman should include a member from the Planning Commission too.
In a fresh proposal to the government, the market watchdog has also said that the composition of the Sebi board should be increased to nine from the current six, besides reiterating its demand for more powers including those to order search, seizure and arrest.
Top government officials said Sebi had demanded that the selection committee should include the finance secretary, the chief economic advisor and a member of the Planning Commission.
The proposal is part of the package that Sebi has mooted for its reorganisation. The finance minister has assured Parliament that the legislation governing Sebi would be overhauled to give the market regulator more powers.
However, the suggestion to include a member from the Planning Commission has raised eye brows since the present route of appointment of a chairman on the board of the market watchdog via the Appointments Committee of the Cabinet (ACC) is considered fairly adequate.
"If at all a new member is required on the committee, the secretary from the department of company affairs should be nominated, since he is already a full-time member on the Sebi board," sources said.
They said unless one considers the specific abilities of any individual, the plan panel does not have any particular experience to handle stock market issues or its regulatory functions.
