CB Bhave to UK Sinha: A look at controversies surrounding past Sebi chiefs

Sebi chair proves to be a hot seat

Securities and Exchange Board of India (Sebi) chief Madhabi Puri Buch is not the first chairperson to get embroiled in controversy. This comes months before her three-year term is due for an extension in March. Typically, this is the time when files start to move in the North Block over fresh appointment or reappointment of the Sebi chief. The previous three chairpersons, dating back to C B Bhave in 2008, have courted some controversies, indicating the complications that come with heading India’s $5.3-trillion stock market watchdog. Here is a look at the controversies surrounding past Sebi chiefs

C B Bhave

Tenure: Feb 19, 2008-Feb 17, 2011
 

Before assuming charge as Sebi chief, Bhave was the chairperson of National Securities Depository Limited (NDSL), which was accused of poor oversight leading to fake initial public offering applications between 2003 and 2005. When Bhave moved from NSDL to market regulator Sebi, there were questions raised over a conflict of interest although he recused himself from theNSDL case. The controversy caught on during the time of his reappointment which thwarted any chance of an extension.

U K Sinha

Tenure: Feb 18, 2011-Mar 01, 2017
 

UK Sinha, the 1976-batch Indian Administrative Service (IAS) officer, is one of the longest serving Sebi chief. However, he started on a rocky note.  Within weeks of his appointment, Sebi’s whole-time member KM Abraham shot a letter to the Prime Minister alleging that the then Finance Minister Pranab Mukherjee, and his adviser Omita Paul had pressured Sinha to go soft against some high-profile corporates. There were various public interest litigations (PILs) filed challenging his appointment as Sebi boss, but most of them were dismissed by the courts.

Ajay Tyagi

Tenure: Mar 01, 2017-Feb 28, 2022
 

The 1984-batch IAS officer from Himachal cadre largely had a blemish-free stint. However, just ahead of the end of his five-year term, Sebi came under intense scrutiny over its handling of the case pertaining to lapses at the National Stock Exchange (NSE), which dated back to 2010 and 2015. This was triggered by an order issued by Sebi which revealed that then NSE chief Chitra Ramkrishna was taking orders from a mystic Yogi said to be residing in the Himalayas to run the country's largest stock exchange.