 "Govt invites applications for Sebi chief post as Buch's term ends on Feb 28")
The Ministry of Finance has invited applications for the post of Securities and Exchange Board of India (Sebi) chief with just a month left in the tenure of the current chairperson Madhabi Puri Buch.
In its advertisement, the Department of Economic Affairs has sought applications from individuals with “high integrity, eminence, and reputation”, considering the importance of Sebi as a market regulator. It also calls for applications from those above 50 years and with over 25 years of professional experience. The last day for submitting applications is February 17. The current chairperson’s tenure, which commenced at the beginning of March 2022, ends on February 28.
The ministry has stated that the person should have shown the capacity to deal with problems of the securities market or should have special knowledge or experience in law, finance, and economics.
“It may, however, be noted that the Financial Sector Regulatory Appointments Search Committee (FSRASC) is free to identify and recommend any other person, who has not applied for the post, on the basis of merit,” reads the circular. FSRASC is the committee on whose recommendations the appointments are made.
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An extension in the term cannot be ruled out if a proper candidate is not found before the end of Buch's term. Market watchers believe that several bureaucrats and even heads of the market infrastructure institutions could be in the fray. In the past, extensions have been granted to Sebi chairpersons like UK Sinha and Ajay Tyagi, even after the publication of advertisements for their successors.
However, as a departure from the past, the new chairperson may get an initial term of five years as opposed to three years.
Buch is the first person from the private sector or a non-bureaucrat to be at the helm of the market watchdog. Her experience in the private space is reflected in the changes in the work environment in Sebi. Among the many firsts, she is also the first woman and the youngest to chair the board.
Buch had earlier served as a whole-time member of Sebi between April 2017 and October 2021. The detailed application format will be available on the Department of Economic Affairs website.
Buch’s last year in the office has been turbulent as she faced allegations from US-based short-seller Hindenburg and the opposition parties.
The short seller, which has now decided to wind up its operations, had questioned the objectivity of Buch in the probe and alleged conflict of interest. The opposition Congress party, on the other hand, accused her of corruption and benefiting from other corporates. Buch and her husband have refuted the allegations. All corporate houses too stepped up to clarify the allegations.
Buch also faced criticism from within as several Sebi employees wrote to the finance ministry, complaining about ‘toxic work culture’ and several other demands. This was followed by a press release by Sebi on HR-related issues, which had to be withdrawn following employee protests.
Despite being at the centre of the storm, Buch's tenure also saw fast-paced changes in the regulatory ecosystem with faster approvals, shorter settlement cycles, more disclosures from FPIs, ESG-related scrutiny, and a slew of measures for ease of business steps for mutual funds, alternative investment funds (AIFs), apart from steps to curb client float with the stock brokers.