Securities and Exchange Board of India (Sebi) chairman Ajay Tyagi has reportedly written to the Prime Minister's Office (PMO) and the union finance ministry to reconsider the budget proposal on reserve fund transfer to the government.

Reports suggested that the Sebi chairman has said the move may compromise the market regulator's autonomy. However, the exact contents of the letter are not known in the sense what are the arguments advanced by the Sebi chief.

Last week, Sebi employees association has written a letter to the Centre opposing the budget proposal that seeks to transfer 75 percent of the regulator’s surplus funds to government coffers.

In the Finance Bill presented by union finance minister Nirmala Sitharaman on July 5, it was proposed that the Sebi board would “constitute a reserve fund and 25 percent of the annual surplus of the general fund should be credited to the reserve fund.