Madhabi Puri Buch appointed Sebi chairperson for a term of three years

Madhabi Puri Buch has been appointed chairperson of the Securities and Exchange Board of India (Sebi), the regulator in charge of overseeing India’s $3.3-trillion stock market ecosystem. She replaces Ajay Tyagi, whose tenure as Sebi chairman ended on Monday.

The Appointments Committee of the Cabinet, headed by the Prime Minister, approved her appointment for an initial period of three years, the government said in a notification on Monday. She is likely to take charge on Wednesday (March 2), as Tuesday is a market holiday.

Puri Buch, 56, will be the first woman, and the first person from the private sector, to head the securities market watchdog. However, she has had a more than four-year stint at Sebi as a whole-time member (WTM) -- a post just below the chairman. The IIM-Ahmedabad alumna will also be the youngest Sebi chief.  

Her last-minute appointment took the market by surprise, as many were expecting Tyagi to get an extension. Tyagi, a 1984-batch IAS officer from Himachal Pradesh cadre, served as chairman for five years. 

Puri Buch worked closely with Tyagi during her stint as WTM between April 5, 2017 and October 4, 2021. As Sebi’s WTM, she handled key portfolios, such as surveillance, mutual funds, and collective investment schemes. 

She assumes the top post at Sebi at a time when the markets are volatile due to the Russia-Ukraine conflict and sustained selling by foreign investors ahead of interest rate hikes by the US Federal Reserve. Also, in recent weeks, Sebi 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 Central Bureau of Investigation and the Income-Tax department. 

The market regulator is also vetting the offer document filed by the state-owned Life Insurance Corporation of India (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, she has 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.

Buch's many first at Sebi

First woman to be appointed chairperson of Sebi

Youngest Sebi chief

First person from the private sector to become Sebi chief

First Sebi WTM to become chairperson

First woman whole-time member of Sebi