Madhabi Buch Leaves SEBI Tomorrow. Govt Yet To Name New Chief

The government, however, is yet to decide on the next SEBI chief. Although this has led to speculations that Buch may be given a short extension, a source who is familiar with the developments, ruled out any such move, clarifying that the process of identifying the next chief is well underway.

According to sources, the government is keen on appointing a seasoned bureaucrat to succeed Buch. Finance and Revenue Secretary Tuhin Kanta Pandey and Economic Affairs Secretary Ajay Sheth are reportedly among the frontrunners.

One of the key achievements of Pandey as Secretary of the Department of Investment and Public Asset Management (DIPAM) was the sale of the then ailing Air India. 

That apart, the government is also looking at SEBI’s whole-time directors, besides giving the next SEBI chief a five-year term instead of three.

Buch took over as the SEBI chief in March 2022, after serving as a whole-time member of the market regulator for more than four years — between April 5, 2017 and October 4, 2021.

Her appointment had created a buzz, as not only was she the first woman to lead the capital markets regulator, but also its first chief from the private sector.

Prior to joining SEBI, she had served as consultant to the New Development Bank, Shanghai. She was also the head of the Singapore office of Greater Pacific Capital, a private equity firm. Besides, she also served as the Managing Director and Chief Executive Officer at ICICI Securities Limited and as Executive Director on the board of the ICICI Bank.

Until mid-2024, it was almost certain that Buch would be given an extension, much like her predecessors Ajay Tyagi and U K Sinha, both of whom had served for more than five years. But now, all indications are that the government is keen to appoint a bureaucrat as her replacement.

What Went Wrong?

Buch was caught in a controversy following the now-disbanded New York-based Hindenburg Research’s report in August 2024, alleging conflict of interest on the part of the SEBI chief, and the involvement of her husband.

Buch’s failure to attend the Parliament's Public Accounts Committee (PAC) meeting soon after, stirred further controversy. She had only informed the PAC at the last moment that she would not be attending the meeting due to other pressing issues.

“This was something that was not taken well by the government. The chorus that she should not be given an extension only got stronger after this,” an insider told The Secretariat on condition of anonymity.

The Lokpal, the country’s anti-corruption body, too, sought Buch’s explanation over the non-attendance.

Stability In Regulators Key Amid Challenges

With the slowdown in the economy and rising risks due to the geo-economic and geopolitical situation, stability in the stock market would be key for economic stability.

In December, the government appointed Sanjay Malhotra, the then Revenue Secretary, as the new Governor of the Reserve Bank of India.

“At this point, it is critical for the government to ensure that the regulators are functioning well to cushion the economy,” the source said.