When two of the capital market regulator’s four board members stepped down this year, they left nearly two dozen high-profile cases pending—matters that could influence India’s market jurisprudence.
The departures of whole-time members Ashwani Bhatia and Ananth Narayan G. in May and October, respectively, have left the Securities and Exchange Board of India operating at half strength. The two were overseeing cases involving companies such as Gensol Engineering Ltd, Religare Enterprises Ltd, and the US-based hedge fund Jane Street.
Even as Sebi’s looking to find replacements for Bhatia and Narayan, the terms of the remaining two whole-time members, Kamlesh Chandra Varshney and Amarjeet Singh, are set to end in June and August, respectively.
As Sebi grapples with an increasing number of cases such as IPO irregularities and intricate offshore trades, legal experts warn that the bottleneck resulting from the vacancies could slow the pace of investigations, enforcement, and policymaking.
Sebi whole-time members anchor the final stages of the enforcement process—issuing show-cause notices, conducting hearings, evaluating responses, and deciding on the final orders, which often set market precedents.
Bhatia, who was handling Sebi’s corporate finance and debt-hybrid securities departments, was overseeing cases involving heavy share pledges by the promoters of Gensol Engineering, the open-offer dispute involving Religare Enterprises, irregularities in initial public offerings by small and medium enterprises (SME IPOs), and unregistered online bond platforms.
Narayan had initiated a complex and technical case against US hedge fund Jane Street over alleged illegal gains of ₹4,843 crore.
Final orders in all these cases are pending. Mint could not ascertain how the pending cases have been distributed between the remaining two Sebi whole-time members.
Per data from Sebi’s website, Bhatia and Narayan collectively issued more than 25 interim orders during their tenures between 2022 and 2025, highlighting the volume of matters now awaiting final adjudication. Final decisions in 22 investigations concerning the Adani Group are also awaiting resolution.
Key Takeaways
- With two of four Sebi whole-time members stepping down this year, nearly two dozen high-profile cases—including those involving IPO irregularities and major corporate disputes—are pending, slowing enforcement and market decisions.
- The two remaining whole-time members face a heavy caseload, creating potential bottlenecks in issuing final orders, even as departmental investigations continue. They, too, are set to step down next year.
- The government has reportedly completed interviews for new Sebi whole-time members, and appointments are expected soon. Experts suggest interim measures to ease the regulatory bottleneck meantime.
Increased workload
Sebi’s reduced board strength is expected to result in a significant concentration of responsibilities.
“All the work will come to the two whole-time members,” stated a former Sebi whole-time member, who declined to be identified. “The pending settlements and all Sebi publications are now funnelled to just two members and may get delayed.”
This strain is compounded by a heavy caseload. Sebi has initiated about 400 investigations since April, with the pipeline further burdened by 29 interim orders passed in 2024–25.
However, historical data presents a nuanced picture. In 2017–18 and 2021–22, when Sebi had only two whole-time members, the regulator issued 61 and 64 final orders, respectively. In contrast, Sebi’s final orders dropped from 54 in 2022–23 to 13 in 2024–25, when it had a full board.
However, according to securities lawyer Ketan Mukhija, the recent decline in final orders may also be due to the changing nature of the cases. “The decline in final orders in recent years, despite a full board, likely reflects Sebi’s growing focus on complex, multi-layered investigations and heightened procedural rigour.”
He added that while Sebi investigations continue under departmental heads, the final adjudication requires sign-offs by the whole-time members, creating a bottleneck during leadership transitions.
Sebi did not respond to Mint’s email requesting comments.
Path to resolution
The government issued notices in May and September calling for applications to the role of Sebi whole-time member. A person familiar with the process, requesting anonymity, said the Department of Economic Affairs had concluded interviews and an announcement was expected soon. Mint could not independently confirm this.
According to legal experts, Sebi could consider interim measures meanwhile to cover the vacancies. In 2023, the regulator secured the Securities Appellate Tribunal’s approval to appoint an alternative adjudicator because a whole-time member was unavailable.
Vaibhav Kakkar, a senior partner at Saraf and Partners, said Sebi could also temporarily delegate limited powers to senior officers.
Former Sebi officials, however, said the short tenure for whole-time members posed a structural issue—a three-year term makes it difficult for board members to be fully effective as markets grow in complexity.
“Short-termism is not good for the regulator,” said a former Sebi official, again on condition of anonymity, emphasizing the need for seasoned decision-makers to protect investors with timely orders.
