FinMin invites applications for new SEBI chairperson; Madhabi Puri Buch's tenure to end on Feb 28

Madhabi Puri Buch assumed the role of SEBI chairperson on March 2, 2022, for a period of three years, which ends on February 28, 2025.

The Ministry of Finance has invited applications for the post of Chairperson for the markets regulator Securities and Exchange Board of India (SEBI) by February 17. The tenure of current SEBI Chairperson, Madhabi Puri Buch, ends on February 28.

"Government of India invites applications from the eligible candidates for filling up the post of Chairman in Securities and Exchange Board of India (SEBI), Mumbai. The appointment shall be made for a maximum period of Five years from the date of assumption of charge or till attaining the age of 65 years of the appointee, whichever is earlier," read the advertisement rolled out by the Department of Economic Affairs (Financial Markets Division).

The SEBI Chair can choose to receive pay  as admissible to a Secretary to the Government of India; or a consolidated salary of Rs 5,62,500 per month, without a house and car.

Madhabi Buch assumed the role of SEBI chairperson on March 2, 2022, for a period of three years, which ends on February 28, 2025. Prior to this, she was a whole-time member at Sebi for five years from April 2017 to March 2022.

Earlier in October 2024, Moneycontrol exclusively reported that the process of finding a possible successor to Madhabi Puri Buch, the chairperson of Securities Exchange Board of India (Sebi), is said to have been initiated by the government.

The tenure of a SEBI chief is usually for three years.  However, exceptions were made in case of UK Sinha and Ajay Tyagi who served as Chairmen for six and five years, respectively. Sinha served as Sebi chairman from February 18, 2011, to March 1, 2017, while his successor, Tyagi's tenure was from March 1, 2017, to February 28, 2022.

Madhabi Puri Buch's tenure

Madhabi Puri Buch, who took charge as Chairperson of SEBI on March 2, 2022, has come to known for her insistence on transparency both from regulated entities and the regulator, and a regulatory approach that is data-driven and collaborative. One of the important reforms for improving SEBI's efficiency was on tracking pendency.

While every regulator counts pendency from the date of last receipt of information, SEBI started tracking ageing from the date of first receipt. Under her chairpersonship, Indian securities market became among the few major economies to roll out T+0 settlement, which improves liquidity and protects investors' money. SEBI also cracked down on speculative behaviour in the derivatives market and business models that thrived on this; and issued ease-of-doing measures to encourage businesses to come and stay under the regulatory ambit.

Allegations

During her tenure, Buch was faced a slew of allegations— initially from short-seller Hindenburg and later the Congress party— regarding her investments in offshore funds linked to the Adani Group, code of conduct violations. Further, a section of SEBI employees had accused her of creating a ‘toxic work environment’ though that matter has now been resolved.

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