Madhabi Puri Buch, India’s first woman to lead the Securities and Exchange Board of India (SEBI), departed unceremoniously as her tenure ended on February 28, 2025. In a departure from SEBI’s tradition, she did not receive a farewell ceremony, hinting at an uneasy relationship with employees and policymakers. Following her exit, the government appointed Finance Secretary Tuhin Kanta Pandey as SEBI’s new chairperson for a three-year term.
A Silent Exit and Employee Reactions
Typically, outgoing SEBI chiefs receive formal farewell events, but Buch’s last day was markedly different. She did not visit the office, and her departure was met with a sense of relief among employees. Reports suggest that internal dissatisfaction had been growing due to her management style and controversial decisions.
Last-Minute Promotions Stir Controversy
One of the primary reasons behind employee unrest was Buch’s decision to promote 15 General Managers (GMs) to the position of Chief General Manager (CGM) in her final days. Notably, she also elevated her Executive Assistant, Murugan, to CGM level, a move criticized for bypassing lower-level officials who were also eligible for promotion. These actions sparked allegations of favoritism and deepened discontent among SEBI staff.
A Tenure Marked by Controversy
Buch’s leadership at SEBI was marred by controversies, particularly in her final year. Employees staged protests outside the Mumbai office against what they described as “unfair work practices.” Additionally, she faced scrutiny from Hindenburg Research and the Congress party over allegations of conflict of interest. In August 2024, Hindenburg accused Buch and her husband, Dhaval Buch, of investing in foreign institutions, raising concerns over ethical violations. These allegations intensified pressure on her to step down.
Government’s Decision Against an Extension
SEBI chiefs typically serve for three years, with the possibility of a two-year extension, provided they have not reached the age limit of 65. However, despite Buch being only 60, the government opted not to extend her tenure. When applications for the SEBI Chief position were invited until February 17, 2025, it became evident that the government was looking for new leadership, breaking a trend set by her predecessors Ajay Tyagi and U.K. Sinha, both of whom had received term extensions.
A Leadership Transition and Future Prospects
With Tuhin Kanta Pandey taking over as SEBI’s 11th chairperson, the regulatory body is set for a leadership transition. His appointment signals the government’s intent to bring stability and restore confidence within the institution. The focus will now be on addressing internal concerns and ensuring a transparent regulatory framework for India’s capital markets.
Madhabi Puri Buch’s abrupt and unceremonious exit from SEBI underscores the challenges she faced during her tenure. From employee dissatisfaction to allegations of favoritism and conflicts of interest, her leadership was mired in controversy. As the new SEBI chairperson steps in, all eyes will be on how he navigates the issues left behind and steers the organization toward a more stable and transparent future.
(With inputs from agencies)
