World
India
The Ministry of Finance has announced the search for a new Chairperson for the Securities and Exchange Board of India (SEBI), with applications open until February 17, 2025. This move comes as the tenure of the current Chairperson, Madhabi Puri Buch, is set to conclude on February 28.
The Role and Eligibility
According to the notification released by the Department of Economic Affairs (Financial Markets Division), the selected candidate will hold the position for a maximum of five years or until the age of 65, whichever comes first. The SEBI Chairperson has the option to either receive a pay equivalent to a Secretary to the Government of India or opt for a consolidated monthly salary of ₹5,62,500, excluding housing and transportation benefits.
Madhabi Puri Buch’s Leadership at SEBI
Madhabi Puri Buch made history as the first woman to chair SEBI when she assumed office on March 2, 2022, for a three-year term. Prior to this, she served as a Whole-Time Member at SEBI from April 2017 to March 2022. During her leadership, Buch emphasized transparency and introduced data-driven regulatory practices. One of her notable reforms was changing SEBI’s method of tracking case pendency, shifting from the date of the last receipt of information to the date of first receipt, thereby improving efficiency.
Under Buch’s tenure, India became one of the few major economies to implement T+0 settlement cycles in securities markets, enhancing liquidity and safeguarding investor funds. She also cracked down on speculative behavior in the derivatives market and introduced ease-of-doing-business measures to encourage companies to comply with regulatory frameworks.
Challenges and Allegations
While her tenure saw significant achievements, Buch faced controversies, including allegations related to offshore fund investments linked to the Adani Group. These claims, initially raised by short-seller Hindenburg and later echoed by opposition parties, accused her of violating codes of conduct. Additionally, there were internal complaints from SEBI employees about a challenging work environment, though these issues were reportedly resolved.
Previous SEBI Chiefs and Extended Tenures
The term of a SEBI Chairperson is typically three years, but exceptions have been made. U.K. Sinha served for six years from 2011 to 2017, while Ajay Tyagi held the position for five years until February 2022. This raises speculation on whether the next appointee will follow the standard term or receive an extended tenure.
The appointment of SEBI’s next Chairperson comes at a crucial time for India’s financial markets. The chosen candidate will be expected to uphold SEBI’s legacy while navigating emerging challenges in the financial sector. As SEBI continues to strengthen investor confidence and adapt to technological advancements, the incoming Chairperson’s leadership will play a pivotal role in shaping the future of India’s securities market.
The Ministry’s invitation highlights the critical nature of the role and the government’s commitment to ensuring a transparent and robust selection process. Aspiring candidates with expertise in financial markets and a strong vision for regulatory oversight are encouraged to apply.
Also Read: Notice Cannot Be Issued On WhatsApp Or Other E-Devices: Supreme Court
