The capital markets regulator Securities and Exchange Board of India has introduced a young professional (YP) programme in which twenty-somethings will be hired for one to three years to assist the SEBI Board in matters relating to the securities market and information technology.
The 50 young professionals will be posted in Mumbai and receive a stipend of ₹70,000 per month. They will be hired for a year and offered two extensions of one year each.
However, they will not be considered SEBI officers or employees. Also, they will not be entitled to any compensation or employment in SEBI in the event of death, illness or injury during their tenure.
Young professionals may be assigned projects or work of a non-confidential nature, depending on their expertise. The young professionals cannot take up any other assignment during the period of their engagement with the regulator.
This is perhaps the first time that the market watchdog plans to extensively use the services of gig or temp workers.
Who can apply?
The opportunity is open to the post-graduates in management, chartered accountants, company secretaries, cost management accountants and chartered financial analysts from the CFA Institute, US. Anyone with one of these qualifications is eligible to work in the Securities Market Operations (SMO) domain.
Their work could entail the following:
A. Analysis of IPO applications and fundraising through different modes in the primary market.
B. Streamlining the processing of public offer documents filed with SEBI as well as draft letters for buybacks and takeovers.
C. Mutual fund surveillance
D. Identifying the role of public interest directors and shareholder directors
E. Corporate governance matters
F. Analysing data of compulsorily delisted firms,
G. Analysis of past and current court cases of credit rating agencies and debenture trustees.
No trading of stocks
It is vital to note that young professionals will not be permitted to indulge in trading or speculation of stocks, securities or commodities of any description.
Also, they cannot make any direct or indirect investment in equity and equity-related instruments, including convertible debentures and warrants, barring units of mutual funds, ETFs (exchange-traded funds), nonconvertible bonds and nonconvertible bonds and nonconvertible debentures, and in rights issues of shares already held by them.
These professionals will be deemed to be “insiders” and will not act on, cause someone else to act on or communicate any unpublished price-sensitive information.