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All you need to know about Madhabi Puri Buch - the first woman Chairperson of the Securities and Exchange Board of India (SEBI).

By Komal Kinger      Mar 01, 2022      0 Comments      2,504 Views
Chairperson Securities and Exchange Board of India Madhabi Puri Buch

Madhabi Puri Buch joined ICICI Bank as a Project Finance Analyst in 1989 and rose through the ranks to become the private lender's Executive Director after a 20-year career.

Madhabi Puri Buch has been appointed  chairperson of the Securities and Exchange Board of India (SEBI) the regulatory body in charge of India's $3.3 trillion stock market ecosystem. She takes over from Ajay Tyagi, whose term as chairman of the SEBI ends  on February 28, 2022.

According to the government, her appointment was authorised by the Cabinet Appointments Committee, which is chaired by the Prime Minister, for a three-year [1] initial term. Because Tuesday is a market holiday, she is most likely to take over on Wednesday (March 2). [2]

Madhabi Puri Buch, will lead the securities market watchdog for the first time as the first woman and the first person from the private sector. She did, however, serve as a whole-time member (WTM) at SEBI  for more than four years, a position just below chairman. 

She will be the youngest SEBI  chief and an IIM-Ahmedabad graduate. Many expected Tyagi to be given an extension, thus her last-minute appointment caught the market off guard.

For five years, Ajay Tyagi, a 1984-batch IAS officer from the Himachal Pradesh cadre, served as chairman. Between April 5, 2017 and October 4, 2021, Madhabi Puri Buch served as a Whole Time Member and worked closely with Tyagi. She managed critical portfolios such as surveillance, mutual funds, and collective investment schemes as a SEBI Whole Time Member.

She takes over as SEBI’s chief executive at a time when markets are shaky due to the Russia-Ukraine crisis and continued selling by international investors ahead of the US Federal Reserve's interest rate hikes. SEBI has also come under fire in recent weeks for its handling of a case involving failures at the National Stock Exchange (NSE), which is currently being investigated by the Central Bureau of Investigation and the Income-Tax Department.

The market regulator is also reviewing the offer document filed by the state-owned Life Insurance Corporation of India (LIC), which is planning India's largest ever share sale in the coming weeks.

Madhabi Puri Buch has worked in the financial markets for almost three decades. In 1989, she joined ICICI Bank. She has worked as an investment banker, directed the country's top broking firm, held a senior position at a private equity firm, and worked for the BRICS bloc's New Development Bank for a brief period.

 

WHO IS MADHABI PURI BUCH ?

  1. From February 2009 to May 2011, she was the managing director (MD) and CEO of ICICI Securities, after beginning her career with ICICI Bank.
  2. Madhabi Puri Buch moved to Singapore in 2011 to work for Greater Pacific Capital LLP. Agora Advisory Pvt Ltd is her company, and she is the founder and director. She also worked for three years at the New Development Bank in Shanghai.
  3. Madhabi Puri Buch was a non-executive director for firms like Idea Cellular Ltd, Zensar Technologies, and Max Healthcare.
  4. Madhabi earned a bachelor's degree in management from the Indian Institute of Management in Ahmedabad after studying at St Stephen's College, University of Delhi.
  5. She succeeds Ajay Tyagi, an IAS officer from the 1984 batch who led the capital markets regulator for the previous five years.
  6. Madhabi Puri Buch has worn many hats and served on a number of committees, including the National Stock Exchange's F&O Segment Committee.
  7. She was a member of the Indian Banks Association's founding committee and the Bombay Chamber of Commerce and Industry's management committee.
  8. In 2017, Buch issued a number of rulings prohibiting the trading of suspected shell businesses, based on a list compiled by the government as part of its anti-black money campaign.
     

 [1] SECTION 3 OF THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT , 1992 

Term of office and conditions of service of Chairman and members of the Board.

5. (1) The term of office and other conditions of service of the Chairman and the members referred to in clause (d) of sub- section (1) of section 4 shall be such as may be prescribed. 

2) Notwithstanding anything contained in sub-section (1), the Central Government shall have the right to terminate the services of the Chairman or a member appointed under clause (d) of sub-section (1) of section 4, at any time before the expiry of the period prescribed under sub-section (1), by giving him notice of not less than three months in writing or three months’ salary and allowances in lieu thereof, and the Chairman or a member, as the case may be, shall also have the right to relinquish his office, at any time before the expiry of the period prescribed under sub-section (1), by giving to the Central Government notice of not less than three months in writing. 

 

[2] SECTION 4 OF THE SECURITIES AND EXCHANGE BOARD OF INDIA ACT, 1992 

Management of the Board.

4. (1) The Board shall consist of the following members, namely:- 

(a) a Chairman; 

(b) two members from amongst the officials of the [5] [Ministry] of the Central Government dealing with Finance [6] [and administration of the Companies Act, 1956(1 of 1956)];

(c) one member from amongst the officials of [7] [the Reserve Bank]; 

[8] [(d) five other members of whom at least three shall be the whole-time members] to be appointed by the central Government.

 (2) The general superintendence, direction and management of the affairs of the Board shall vest in a Board of members, which may exercise all powers and do all acts and things which may be exercised or done by the Board. 

(3) Save as otherwise determined by regulations, the Chairman shall also have powers of general superintendence and direction of the affairs of the Board and may also exercise all powers and do all acts and things which may be exercised or done by that Board. 

(4) The Chairman and members referred to in clauses (a) and (d) of sub-section (1) shall be appointed by the Central Government and the members referred to in clauses (b) and (c) of that sub-section shall be nominated by the Central Government and the [9] [Reserve Bank] respectively. 

(5) The Chairman and the other members referred to in clauses (a) and (d) of sub-section (1) shall be persons of ability, integrity and standing who have shown capacity in dealing with problems relating to securities market or have special knowledge or experience of law, finance, economics, accountancy, administration or in any other discipline which, in the opinion of the Central Government, shall be useful to the Board. 

 



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