Govt Invites Application for SEBI Chairperson's Post
Moneylife Digital Team 27 January 2025
With the current Securities and Exchange Board of India (SEBI) chairperson Madhabi Puri Buch's three-year term coming to an end, the Union government has invited applications for the post of SEBI chief. 
 
The job advertisement published by the department of economic affairs (DEA), under the Union ministry of finance (FinMin) says, "The appointment shall be made for a maximum period of five years from the date of assumption of charge or till attaining the age of 65 years of the appointee, whichever is earlier. The chairman shall have an option to receive pay - (a) as admissible to a secretary to the government of India; or a consolidated salary of Rs5.62 lakh per month (without house and car).
 
"Keeping in view the role and importance of SEBI as a regulator, it is desirable that persons with high integrity, eminence and reputation, preferably above 50 years, with more than 25 years of professional experience may apply..." the advertisement for vacancy says.
 
On 28 February 2022, Ms Buch, who earlier served as whole-time member (WTM), was appointed as chairperson of SEBI for a three-year term. She was first appointed as a WTM of SEBI in April 2017. She received several extensions and her earlier role at the regulator ended in October 2021. As the only woman WTM at SEBI, she handled portfolios such as surveillance, collective investment schemes (CIS) and investment management.  
 
Under a cloud over allegations of conflict of interest levelled by US-based short-seller Hindenburg Research, the SEBI chairperson was asked to appear before the public accounts committee (PAC) of Parliament on 24 October 2024, which is reviewing the performance of the market regulator. However, the multi-party PAC, headed by Congress leader KC Venugopal, decided to postpone the meeting after Ms Buch informed about her inability to travel to Delhi. (Read: PAC Denies Exemption from Appearance to SEBI Chief Madhabi Buch, Postpones Meeting
 
On 10 August 2024, US-based short-seller Hindenburg Research alleged that the SEBI chairperson had a stake in obscure offshore entities used in the Adani money siphoning scandal. 
 
Quoting whistle-blower documents, Hindenburg says, "We had previously noted Adani's total confidence in continuing to operate without the risk of serious regulatory intervention, suggesting that this may be explained through Adani's relationship with SEBI chairperson, Madhabi Buch. Whistle-blower documents show that Ms Buch, the current chairperson of SEBI, and her husband Dhaval Buch had stakes in both obscure offshore funds used in the Adani money siphoning scandal."
 
While 'strongly' denying the allegations and insinuations made in the Hindenburg report, Ms Buch and her husband stated that the (now defunct) US-based short-seller was attempting to attack SEBI's credibility and indulging in character assassination of the chairperson.
 
In a detailed statement, the Buchs stated their investment in a fund promoted by IIFL Wealth Management was as Singapore-based private citizens and made two years before Ms Buch joined SEBI as a whole-time member. "The decision to invest in this fund was because the chief investment officer (CIO), Anil Ahuja, is Dhaval's childhood friend from school and IIT Delhi and, being an ex-employee of Citibank, JP Morgan and 3i Group Plc, had many decades of strong investing career. The fact that these were the drivers of the investment decision is borne out of the fact that when, in 2018, Mr Ahuja left his position as CIO of the fund, we redeemed the investment in that fund. As confirmed by Anil Ahuja, at no point in time did the fund invest in any bond, equity, or derivative of any Adani group company." (Read: Madhabi Puri & Dhaval Buch Say Hindenburg Attacking SEBI's Credibility, Indulging in Character Assassination)
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