Winning Bizness Desk
Mumbai. The role of SEBI (Securities and Exchange Board of India) Chief is one of immense responsibility, but it often comes with its fair share of controversies. The current SEBI Chairperson, Madhabi Puri Buch, finds herself in the eye of a storm after allegations surfaced from short-seller Hindenburg Research. The whistleblower claims that Buch and her husband have stakes in obscure offshore funds allegedly used to siphon off money from the Adani Group. Buch has vehemently denied these allegations, accusing Hindenburg of character assassination and clarifying that the short-seller has been served notices for various violations. According to her, instead of responding to these notices, Hindenburg is attacking SEBI’s credibility.
The SEBI Chief's Legacy of Controversies
Madhabi Puri Buch's current predicament is not unique in the history of SEBI. The chairperson's position, while prestigious, has often been mired in controversy. Buch, whose term is set to end on February 28, 2025, joins a list of former SEBI chiefs whose tenures were also marred by allegations and disputes.
C B Bhave: The Conflict of Interest Dilemma
One of the most notable controversies in SEBI’s history involved C B Bhave, who served as the SEBI chairman from February 19, 2008, to February 17, 2011. Bhave's tenure was shadowed by concerns over a conflict of interest, stemming from his previous role as the chairman of National Securities Depository Limited (NSDL). Between 2003 and 2005, NSDL was embroiled in a scandal involving substandard and fake IPO applications. When Bhave transitioned from NSDL to SEBI, questions were raised about the potential conflict of interest. To avoid any appearance of bias, Bhave recused himself from matters related to NSDL. However, the issue resurfaced during discussions about extending his tenure, and ultimately, Bhave did not receive an extension after his three-year term.
UK Sinha: Appointment Under Scrutiny
UK Sinha, the longest-serving SEBI chairman, held the position from February 18, 2011, to March 1, 2017. His appointment was immediately challenged when SEBI’s full-time member, C M Abraham, accused the then Finance Minister Pranab Mukherjee and his advisor Omita Paul of pressuring him to adopt a lenient approach towards high-profile corporates. The controversy led to several Public Interest Litigations (PILs) against Sinha’s appointment, many of which were ultimately dismissed.
Ajay Tyagi: The NSE Co-location Case
Ajay Tyagi succeeded Sinha as SEBI chairman on March 1, 2017. Despite his efforts to lead SEBI, his tenure was overshadowed by the National Stock Exchange (NSE) co-location case, which brought severe criticism to the regulatory body. SEBI’s order revealed that Chitra Ramakrishna, the then NSE chief, was taking directions from a mysterious “yogi” based in the Himalayas, who allegedly had a significant influence over NSE’s operations.
The role of SEBI Chairperson is undoubtedly challenging, with each chief facing unique pressures and controversies. As Madhabi Puri Buch navigates her tenure amidst the current allegations, the history of her predecessors serves as a reminder of the complexities and scrutiny inherent in regulating India's financial markets.
