Damodaran Committee slams panel interview-based selection of regulators

........The government adopts different mechanism for various watchdogs from time to time. For instance, banking regulator Raghuram Rajan's name was forwarded by Finance Minister P Chidambaram to Prime Minister Manmohan Singh who gave his nod, those in know of the development said. However, at the time of Damodaran's exit in 2008, an interview was called and C B Bhave was selected as the Sebi chairman. The committee said the practice of inviting applications from interested candidates and subjecting them to a process of interviews by a panel comprising persons with no familiarity with the regulatory organisation, is the surest way to cause loss of public confidence not only in the process but also in the organisation............

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