Mumbai: The year 2024 has been a rollercoaster for Madhabi Puri Buch, the first woman to chair the Securities and Exchange Board of India (SEBI). Once celebrated for her deep understanding of the financial sector, her tenure has come under intense scrutiny following allegations that have raised questions about her integrity and governance.
In January, Buch confidently declared she knew "where all the skeletons are hidden." But by mid-year, critics began suggesting that some of those skeletons might reside in her own domain. Allegations of complicity with the Adani Group, conflict of interest, and mismanagement have overshadowed her earlier achievements, although no claims have been substantiated to date.
Allegations and Political Turmoil
The controversy began in August, when U.S.-based Hindenburg Research accused Buch and her husband of connections to the Adani Group, claiming they used the same funds as Vinod Adani, Gautam Adani’s brother. This was interpreted as a reason for SEBI’s perceived leniency towards the conglomerate. The allegations were quickly seized upon by opposition parties, particularly the Congress, which demanded accountability. Buch and her husband have strongly denied the charges.
Adding to the turmoil were accusations of conflict of interest tied to Agora Advisory, a consultancy firm owned by the Buch family. The firm reportedly earned revenues during her tenure at SEBI, raising eyebrows about potential impropriety. While these claims were also denied, the ongoing uproar has clearly dampened Buch’s ability to operate effectively.
Internal Struggles and Policy Setbacks
Buch faced additional challenges with internal SEBI operations. Employee protests erupted after reports of misconduct among senior officials surfaced. SEBI’s initial response—a press release blaming external influences—was later withdrawn following widespread criticism, marking a public relations misstep.
Several of Buch’s ambitious projects have also faltered. Her plans for implementing T+0 settlement, a first-of-its-kind initiative globally, failed to gain traction among brokers, exchanges, and even the government. Similarly, an effort to mandate depositories to pay investors directly—a move meant to reduce broker involvement—collapsed on its first day of implementation.
Her enthusiasm for regulating cryptocurrencies has also faced resistance, with no significant progress made.
Looking Ahead
Despite the setbacks, Buch’s term has included some commendable decisions, particularly in the derivatives market, backed by solid data. Her admirers argue she remains one of the most qualified individuals to have led SEBI, having been mentored by stalwarts like N. Vaghul and K.V. Kamath during her career in the private sector.
However, with her term set to end in March 2025, questions remain about her future as SEBI chairperson. Observers hope the controversies do not dissuade the government from appointing future leaders from the private sector, as Buch’s insights from her corporate experience brought a fresh perspective to the regulatory body.
While her tenure may have been marred by controversy, Buch’s story serves as a reminder of the challenges that come with balancing private sector insights with public regulatory responsibilities.
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