Sebi seeks external consultant for overhaul of role, structure

With an aim to strengthen its oversight and policymaking roles in the wake of fast-changing market dynamics, market regulator Sebi is bringing on board an outside consultancy firm for an overhaul of its functions and organisational structure.

The Securities and Exchange Board of India (Sebi), which regulates stock markets and various capital market related businesses in the country, has already got some Expressions of Interest (EoIs) from some domestic and international consultancy firms and the process of short-listing the names could begin later this week, a senior official said.

A decision on the final name could be taken by the end of this month after presentations by the short-listed consultants before a Consultancy Evaluation Committee, examination of their technical and financial bids and further due diligence on them, he added.

The Sebi would ask the external consultant to study and make recommendations on its organisational structure, the human resources, the required changes in its areas of focus, technological resources and co-operation as also sharing of regulations and oversight with other regulatory and enforcement agencies.

The regulator wants a leading consultancy firm of international repute for the job and would expect it to make the recommendations for Sebi's role in the Indian financial sector for a 5-10 year time horizon.

Besides the department-wise study of Sebi's various roles, the consultant would be required to review Sebi's human resource structure, evaluate the adequacy and skills of existing staff and also review their performance management system.

The advisor would also look at the possibility of any change in Sebi's areas of focus, while identifying the activities the regulator should consider scaling back or exiting completely, as also those requiring additional attention.

The Sebi would also look for suggestions on enhancing its technological capabilities, especially for its surveillance and investigation-related activities, and on adopting the best technology practices used by other financial regulators.

The consultant would also study Sebi's relationship with other market participants, including stock exchanges and industry associations that act as SROs (Self Regulatory Organisations).

The consultant would be required to complete its study and submit its recommendations within 9-12 months, or by the end of this year.