Sebi mulls pension fund for employees

Capital markets regulator Sebi is mulling the feasibility of a pension or superannuation fund for its employees as part of efforts to retain talent by providing long-term benefits to the staff.

The proposal has been discussed by Sebi's Committee on Rationalisation of Financial Resources (CRFR), which favours setting up such a fund, sources said.

It was also suggested that a committee be set up exclusively to examine the issue "holistically in a time-bound manner so that an appropriate compensation framework including superannuation benefits be structured to address the growing organisational needs" of the regulatory authority.

The CRFR, which submitted its report earlier this month, was asked to analyse and suggest various means to bolster Sebi's financial resources to help it deliver its regulatory and investor-protection mandate.

Among other measures, the CRFR suggested a hike in fees charged by Sebi to market intermediaries as well as listed and to-be-listed companies. This was approved by Sebi's board at a meeting last week.

To set up a pension or superannuation fund for Sebi's employees, the CRFR examined schemes offered by the government and public sector undertakings. Besides, it analysed schemes at other regulatory bodies and public financial institutions.

It suggested that a scheme offered by the Insurance Regulatory and Development Authority can be explored but the objective should be to build a superannuation fund that can meet the pension needs of employees. The committee noted that about Rs 10 crore may be required to meet pension needs.

The CRFR said there is a need to critically examine the expanding organisational requirements, particularly with respect to staff expectations, in a move to retain trained manpower and attract new talent to fulfil Sebi's regulatory mandate.

At the same time, the committee said some internal benchmarks for evaluation of performance should be evolved to distinguish performers and create a suitable framework for rewarding them.

The committee was of the view that a suitable exit mechanism should be put in place for employees who are not able to meet organisational expectations.

EDITORIAL OF THE DAY

  • Common test will safeguard sanctity and bring accountability to medical profession

    Recalling its order of 2013, the Supreme Court paved the way for the all-India common entrance test, the national eligibility-cum-entrance test (NEET)

FC NEWSLETTER

Stay informed on our latest news!

TODAY'S COLUMNS

Amita Sharma

Political rhetoric makes for counter poetry

Poetic flourishes flavour politics. Ghalib and Hafez flowed profusely to ...

Zehra Naqvi

Watch your words, for they can kill

You must’ve heard the ph­rase ‘if looks could kill’. Ever ...

Dharmendra Khandal

Biodiversity day has come and gone. Yet again

Every year on May 22, world celebrates international biodiversity day. ...

INTERVIEWS

William D. Green

Chairman & CEO, Accenture