Sebi Chairperson Madhabi Puri Buch is embroiled in allegations, raising several questions on integrity, transparency and competency of the market regulator
Sebi Chairperson Madhabi Puri Buch has denied all allegations against her husband and her, calling them false, malicious and derogatory
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Colleagues of Madhabi Puri Buch, chairperson of the Securities and Exchange Board of India (Sebi), feel that problem-solving with her is like peeling an onion. It makes everyone cry during the process, but by the time peeling layer after layer of the onion is done, there is no problem left. Buch’s statement in a convocation address at IIM-Ahmedabad (IIM-A), her alma mater, on March 30 somewhat summaries the situation she now finds herself in. Her comment was in reference to the process of how India became the first large market in the world to move to T+1 settlement cycle for shares (later to optional T+0 settlement).
Caught in a mysteriously twisted game of knots and tangles, the more Buch ties to untangle herself, the more she seems to find herself in uncomfortable situations. Helming one of the world’s largest stock markets in the world with around $5.3 trillion market capitalisation, Buch’s challenges were undoubtedly steep from the beginning. However, a series of allegations hurled against her has made the task far more complicated, raising several questions around governance, transparency, integrity and credibility—not only Buch’s, but also of the market regulator.
Though both Sebi, and separately Buch along with husband Dhaval Buch, have denied all the allegations made by Hindenburg Research and the opposition Congress party, it remains to be seen if there are any investigations conducted by the government to prove otherwise. Despite an attack on the integrity of Sebi, the government has remained silent for over a month.
On September 16, Finance Minister Nirmala Sitharaman commented that the Sebi chairperson and her husband have been responding to some of the allegations, and are defending themselves by presenting facts to counter the claims of the Congress. “I think the facts have to be considered,” she said in response to a query on the matter at a Network18 event.
On August 10, Hindenburg had issued a statement accusing Buch of conflict of interest in Adani Group and the regulator’s investigations in it.