Dynamite News DN Exclusive: Who'd be next SEBI Chief; Many heavy weights in queue
Names of a number of Stalwarts for the SEBI Chief are buzzing in the political and financial power corridors of the National Capital. Must follow this investigative story on Dynamite News:
New Delhi: The incumbent Chief of Securities and Exchange Board of India (SEBI) Madhabi Puri Buch is going to retire on 28 February.
A number of stalwarts are vying for the coveted post of SEBI Chairman. The buzz of lobbying is taking rounds in the high political and financial circles, reports Dynamite News correspondent.
Govt invites applications
Buch is not getting an extension in her post as the Government has invited applications for the post of SEBI Chairman. The Finance Ministry has sought the applications by February 17.
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The Government advertisement says the appointment of the next SEBI Chief will be made for a maximum period of five years or till the candidate attains the age of 65 years. The Chairman shall have an option to receive pay as admissible to a Secretary to the Government of India, or a consolidated salary of Rs 5,62,500 per month.
Buch profile
Buch is the first woman to lead SEBI, and the first person from the private sector appointed to this position. She functioned as a whole-time member of SEBI from April 2017 to March 2022, and was responsible for important regulatory orders. Buch has been credited with bringing rapid changes that improved the system as well as improved the efficiency of the regulatory body
Controversy about Buch
Madhabi Puri Buch's tenure as Sebi chief has not been without challenges. Short-seller Hindenburg Research had last year levelled allegations against Buch, which she had dismissed. However, multiple government sources had subsequently said that Buch won’t be given an extension though she was allowed to complete her term till February 2025.
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Predecessors of Buch
U K Sinha served as Sebi Chairman from February 18, 2011, to March 1, 2017. UK Sinha served as SEBI Chairperson for six years, making him the second longest-serving Chairperson. His successor, Ajay Tyagi, held the post from March 1, 2017, to February 28, 2022. Ajay Tyagi is an IAS officer who served as SEBI Chairperson for five years.
Why SEBI so important
The Securities and Exchange Board of India (SEBI) is the regulator of the financial markets in the country. It was established on 12 April 1988. SEBI was initially established as a non-statutory body, i.e. it had no control over anything but later in 1992, it was declared an autonomous body with statutory powers. This regulatory authority plays an important role in regulating the securities market of India. This regulatory authority acts as a watchdog for all the capital market participants. Its main purpose is to provide such an environment for financial market enthusiasts that facilitate the efficient and smooth working of the securities market. SEBI also plays an important role in the economy. To make this happen, it ensures that the three main participants of the financial market are taken care of, i.e. issuers of securities, investors, and financial intermediaries.