The government has initiated the formal process of a new Chairperson to the Securities and Exchange Board of India (SEBI), as the present Chief, Madhabi Puri Buch, will complete her term on February 28, 2025. The Ministry of Finance issued an application form for this highly coveted post and the deadline to submit the applications was February 17.
The government clarified this issue in the public notice issued by the Ministry of Finance’s Department of Economic Affairs, stating that the new Sebi Chairperson will be appointed for a maximum of five-year tenure, starting from the day they join the office, or until they reach the age of 65, whichever comes first. The position offers two salary options, the equivalent pay of a Secretary to the Government of India or a consolidated monthly salary of Rs 5,62,500. The position does not include provision for a house or car.
Madhabi Puri Buch’s Legacy
Madhabi Puri Buch became India’s first female chairperson at Sebi when she took up the position on March 2, 2022. Puri Buch worked full-time at Sebi from 2017 until 2022. Throughout her stint as chairperson, she was instrumental in handling many regulatory functions and reforms at Sebi.
However, Buch’s tenure has been fraught with controversy and obstacles. One notable issue that drew attention was the Adani Group’s regulatory failures. Short-seller Hindenburg Research’s allegations, as well as subsequent criticism from political parties such as Congress, have raised concerns about Sebi’s handling of investments in Adani Group-linked offshore funds and potential violations of its code of conduct.
Another incident occurred when a group of Sebi employees accused her of creating a “toxic working environment.” However, the issue was rectified, and her term lasted.
The Sebi Chairperson Position: A Historical and Influential Appointment.
The government normally holds the position of Sebi Chairperson for three years; however, it has made exceptions in the past. U K Sinha was Sebi’s Chairperson for six years, from 2011 to 2017, and his replacement, Ajay Tyagi, has been in the role for the past five years, from 2017 to 2022.
The government’s nomination of a new Chairperson will have an impact on the regulatory body’s future direction and ensure that Sebi continues to fulfill its responsibility as India’s market watchdog.
