Ajay Tyagi was appointed for a period of three years and was eligible for an extension of two years. However, the government decided to call in for a fresh selection process by issuing advertisement on January 24.
Last week, sources said that two dozen people, including two Whole Time Members of Securities and Exchange Board of India (Sebi), have applied for the post of Chairman. The last date for applying for the post was February 10.
In the case of Tyagi, the government issued appointment notification twice.
According to the first notification issued on February 10, 2017, Tyagi, the then Additional Secretary (Investment) in the Department of Economic Affairs, was appointed Sebi Chairman for a period not exceeding five years or till the age of 65 years or until further orders, whichever is earlier.
Subsequently, another notification curtailed his appointment to a period of three years.
As per the procedure for the appointment of regulatory heads, the candidates would be shortlisted by the Financial Sector Regulatory Appointments Search Committee (FSRASC) headed by the Cabinet Secretary.
The shortlisted candidates are interviewed by a panel comprising Economic Affairs Secretary and three external members having domain knowledge.
Based on the interaction, FSRASC recommends a name to the Appointments Committee of the Cabinet headed by Prime Minister Narendra Modi for approval.