Damodaran is new Sebi chief

Damodaran will get a three-year term.

Industrial Development Bank of India (IDBI) Chairman and Managing Director M Damodaran was tonight appointed the chairman of the Securities and Exchange Board of India (Sebi). Damodaran will take over from GN Bajpai, who retires tomorrow, and will get a three-year term.

Damodaran was instrumental in turning around the Unit Trust of India (UTI), which was split in two after the 2001 muddle in the country's biggest mutual fund. Damodaran had succeeded P Subramanian as UTI chief in 2002 after the muddle came to light.

He was also asked to look after IDBI and recently took over as its full-time chairman-cum-managing director after the bank was corporatised. The government is yet to choose a successor to Damodaran as IDBI chairman.

Damodaran met Finance Minister P Chidambaram in the evening but told reporters that he was yet to receive any communication from the finance ministry on his appointment as Sebi chairman. Bajpai also met Chidambaram earlier in the day.

Damodaran will be the fifth Sebi chairman. Apart from Bajpai, his predecessors are GV Ramakrishna, SS Nadkarni and DR Mehta.

Damodaran, an IAS officer, was earlier officer on special duty with the Reserve Bank of India, dealing primarily with the restructuring of three identified weak public sector banks. He was also joint secretary, banking, for five years.