Sebi chairperson Madhabi Buch.
Credit: PTI Photo
Bengaluru: Securities and Exchange Board of India (Sebi) chairperson Madhabi Puri Buch is unlikely to be granted an extension when her current tenure ends on February 28, 2025, DH has learnt from highly placed sources.
A reason being cited for this is the damage caused to the reputation of the equity markets regulator by the allegations made against her by Hindenburg Research.
While the Union government and the Union finance ministry believe that the allegations against Buch are weak, the leadership is aware that extending her tenure will give ammunition to a much stronger opposition and the critics of the government.
It is learnt that Buch has likely been informed through unofficial channels that she will serve only one three-year term as Sebi chairperson. Buch took charge of the regulator on March 1, 2022.
Sebi did not respond to DH’s request for comments for the story.
“We (the Centre) have kept ourselves out of this whole issue. But extending her tenure may send a wrong message and could have political ramifications. The government stands behind Sebi and the chairperson while she is in office,” said an informed source.
“The regulators should be above reproach or suspicion,” a second source said, while confirming that Buch’s tenure may not be extended.
“What Hindenburg is saying about Buch is not even as strong as what they alleged against Adani. Could the Buchs have handled their investment affairs better? Perhaps,” the second official said.
Buch’s immediate two predecessors, Ajay Tyagi and U K Sinha, got extensions and served a 4-yr & 6-yr term as Sebi chairmen, respectively.
On September 8, Buch & her husband Dhaval denied any wrongdoing in light of allegations by Hindenburg and said they had invested in a fund promoted by IIFL Wealth Management as Singapore-based private citizens, 2 years before Buch joined as a whole-time member in 2017.
In a separate statement on the same day, Sebi said that Buch made relevant disclosures from time to time and recused herself in matters involving potential conflicts of interest. It also asked investors to “remain calm and exercise due diligence” before reacting to reports like the one published by Hindenburg.