The appointment–which is done by a committee chaired by the Prime Minister –breaks many a glass ceiling. Puri Buch will be the first woman and first person from the private sector to head the securities market watchdog. Although, her appointment comes after a near-five year stint at Sebi as a whole-time member (WTM)-a post which is a step below the chairman.
The IIM-Ahmedabad alumnus will also be the youngest Sebi chairman.
Her last minute appointment took the market by surprise as many were expecting the outgoing chief Ajay Tyagi to get an extension.
Puri Buch has been given an initial term of three years. She is likely to take charge on March 2, Tuesday being a market holiday.
“The Appointments Committee of the Cabinet has approved the appointment of Madhabi Puri Buch, Former Whole Time Member, Sebst to the post of Chairman, Securities and Exchange Board of India (Sebi), initially for a period of three years from the date of assumption of charge of the post, or until further orders, whichever is earlier,” the government said Monday in a notification.
Tyagi’s tenure as Sebi chairman ended on Monday. The 1984-batch IAS officer from Himachal cadre served as chairman for five years.
Puri Buch has worked closely with Tyagi during her stint as WTM between April 05, 2017 and October 04, 2021. As Sebi’s WTM, she has handled key portfolios such as surveillance, mutual funds, and collective investment schemes.
Puri Buch joins Sebi at a time when the market has turned volatile due to the Russia-Ukraine conflict and sustained outflows by foreing investors ahead of interest rate increases by the US Federal Reserve. Also, Sebi in recent weeks has been facing criticism over its handling of the case pertaining to lapses at the National Stock Exchange (NSE), which is now being probed by agencies such as the CBI and IT.
The market regulator is also currently vetting the offer document filed by state-owned Life Insurance Corporation (LIC), which is aiming to launch India’s largest share sale in the next few weeks.
Buch has three decades of financial market experience. She joined ICICI Bank in 1989. Since then worked as an investment banker, headed the country’s leading broking outfit, held a senior position at a private equity major and had a brief stint with the New Development Bank, set up by the BRICS bloc of nations.
