In SEBI history, Madhabi Buch is only the second non-IAS Chairperson

SEBI Chairperson Madhabi Puri Buch is at the centre of controversy as Hindenburg Research's latest report reveals that she and her husband allegedly held hidden stakes in obscure offshore funds in Bermuda and Mauritius, associated with Vinod Adani, Gautam Adani's brother.

In light of these allegations, here's a breakdown of what the Securities and Exchange Board of India (SEBI) does and and the impact past chairpersons have had on its current standing.

What does SEBI do?

The Securities and Exchange Board of India (SEBI) was initially formed as a non-statutory body on April 12, 1988, by a Government of India resolution and it was subsequently made a statutory body in 1992.

Credit: thehindubusinessline

SEBI's main responsibilities include:

• Protecting investor interests
• Promoting and regulating the securities market under the SEBI Act, 1992
• Enhancing market development and investor protection through awareness and financial literacy programs
• Addressing investor grievances
• The body also collaborates on global securities standards as part of the International Organization of Securities Commissions (IOSCO).

A look at SEBI's leadership: From historic appointments to controversial tenures

On March 1, 2022, Madhabi Puri Buch made history by becoming the first woman to head SEBI, marking a significant milestone for women in India's financial sector.

Credit: HBL | Madhabi Puri Buch

Not only is she the first woman in this role, but she is also only the second non-IAS officer ever appointed as SEBI Chairperson, after GN Bajpai.

This move had surprised many, given that SEBI has had 10 chairpersons out of which eight have been IAS officers.

Buch, who has a background in mathematics from St. Stephen's College and an MBA from IIM Ahmedabad, began her career at ICICI Bank in 1989.

She had also worked as a consultant with the New Development Bank in Shanghai, headed the Singapore office of Greater Pacific Capital, and served as MD and CEO at ICICI Securities Limited.

Her extensive experience includes serving as SEBI's Whole Time Member from April 2017 to October 2021 and leading SEBI's technology committee since December 2021 before she became the body¡¯s Chairperson.

But before Buch, from 2002-05, GN Bajpai was SEBI's first non-IAS chairperson, who came to hold the position following a 36-year career in Life Insurance Corporation of India (LIC), and rising to become it's Chairman. During his tenure, SEBI improved its surveillance, monitoring, and risk management systems.

Other notable SEBI Chairpersons who have faced significant controversies during their tenure include:

G.V. Ramakrishna (1990-1994)

Credit: Moneylife | G.V. Ramakrishna

It was under SEBI's second Chairperson, G.V. Ramakrishna - and the first after it was set up as a statutory body - that the infamous Harsha Mehta scam had broken out.

This 1992 Indian stock market scandal involved Harshad Mehta and other bankers manipulating the Bombay Stock Exchange, defrauding investors of over $10 million.

Despite facing significant pressure and lobbying from influential stockbrokers and politicians, Ramakrishna, who passed away in 2021, is remembered for his efforts to clean up and transform the Indian capital markets during his tenure.

CB Bhave (2008-2011)

Credit: Wikipedia | C.B. Bhave

Before becoming SEBI chief, Bhave chaired the National Securities Depository Limited (NSDL), which faced criticism for inadequate oversight related to fraudulent IPO applications between 2003 and 2005. When he transitioned from NSDL to SEBI, concerns were raised about a potential conflict of interest.

U. K. Sinha (2011-2017)

Credit: India TV News | U. K. Sinha

UK Sinha, one of the longest-serving SEBI Chairpersons, faced controversy early in his tenure. Within weeks of his appointment, SEBI's whole-time member KM Abraham sent a letter to the Prime Minister accusing then-Finance Minister Pranab Mukherjee and his adviser Omita Paul of pressuring Sinha to be lenient with certain high-profile corporates.

Ajay Tyagi (2017-2022)

Credit: Jagran Josh | Ajay Tyagi

It was during the tenure of Ajay Tyagi, a 1984-batch IAS officer, that SEBI issued an order revealing that NSE chief Chitra Ramkrishna had been following instructions from a mystic Yogi reportedly residing in the Himalayas. SEBI's overall handling of the case had been under much scrutiny.

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