
MUMBAI: The finance ministry has invited applications to find a new chairperson for the markets regulator Sebi, finally putting an end to the controversy-ridden incumbent Madhabi Puri Buch’s three-year tenure that ends on February 28.
"The government invites applications from eligible candidates for filling up the post of chairman in Securities and Exchange Board of India. The appointment shall be made for a maximum period of five years from the date of assumption of charge or till the appointee attains 65 years, whichever is earlier," reads the advertisement put out by the department of economic affairs (financial markets division) Monday.
The new appointee can choose to receive pay as admissible to a secretary to the government, or a consolidated monthly salary of Rs 5,62,500, without a house and car, the advertisement adds.
The ministry has sought applications till February 17.
Buch assumed the office on March 2, 2022, for a period of three years, which ends on February 28, 2025. Prior to this, she was a whole-time member at Sebi for five years from April 2017 to March 2022.
It can be noted that Buch’s was the only regulator who was accused of serious malpractices in the nature of non-disclosure of his sources of income and investments made before joining the Sebi apart from also being accused of giving favourable treatment to some companies where engaged her husband Dhaval Buch in August 2024.
These allegations were made by a New York based short-seller Hindenburg after it alleged that Adani group made insider trading and stock price rigging. It last week announced closure of its business, which was primarily targeting companies with damaging reports even as it held short-positions in those companies’ stocks.
She also faced allegations from the opposition Congress regarding her investments in offshore funds linked to the Adani Group, code of conduct violations. Further, a section of Sebi employees also accused her of creating a toxic work environment though that matter has now been resolved.
It can be noted that the government usually gives a three-year tenure to all regulators be it the RBI or Sebi or Irdai. Even the tenor of the heads of state-run banks and other companies are also for three years, in the first term, though there have been exception like in the case of UK Sinha and Ajay Tyagi who were Sebi chairmen for six and five years, respectively, after given extensions. Sinha was as Sebi chairman from February 18, 2011 to March 1, 2017, while his successor Tyagi led the body was from March 1, 2017 to February 28, 2022.