C B Bhave, currently the chairman of National Securities Depository Ltd, will be the new chief of the Securities and Exchange Board of India.

He will replace the current Sebi chief M Damodaran.

Bhave, who had earlier served both in the finance ministry as well as the Sebi, is expected to take charge after Damodaran's term ends on February 17, sources said.

There was, however, no official confirmation on the appointment that is believed to have been decided on Wednesday night after the finance ministry reportedly took up the issue with the Prime Minister's Office.

A notification on the appointment of the new Sebi chairman is expected to be announced shortly.

The name of Bhave, along with that of UTI Asset Management Company chairman U K Sinha, Canara Bank [Get Quote] chairman M B N Rao, and ministry of external affairs additional secretary J Bhagwati, was doing the rounds as a possible successor to Damodaran.

The panel had also said current Chairman M Damodaran can be eligible for reappointment. Damodaran took over as Sebi chairman in February 2005 for a three-year term.