On Monday, the government called for applications for the position of chairperson at the Securities and Exchange Board of India (SEBI). This comes just a month before Madhabi Puri Buch’s three-year term ends on February 28. She became SEBI’s head in March 2022.
Recently, Buch faced serious accusations from Hindenburg Research, a US-based firm that suggested both she and her husband, Dhaval Buch, might have connections to mysterious offshore companies involved in the Adani money scandal. This led to political arguments, with the Opposition Congress asking for an investigation, while the ruling party, BJP, defended Indian companies and criticized Congress for its stance.
The Adani Group dismissed the accusations as false and misleading, while Buch and her husband called it an attempt to damage their reputations.
On Monday, the finance ministry published a public notice stating that the new SEBI chairperson can serve for a maximum of five years or until they turn 65, whichever comes first. Applications are due by February 17. The new chairperson will earn a salary similar to that of a government secretary, which is ₹5,62,500 monthly, without housing and car benefits.
The notice highlighted the importance of the SEBI chief and specified that candidates should be over 50 years old, with at least 25 years of professional experience. Moreover, candidates should have knowledge or experience related to securities markets, law, finance, or economics that the government thinks would help SEBI.
Ties to any finances or interests that could affect their role as chairperson are not allowed. The government will choose the new SEBI chairperson based on recommendations from a special committee but can also suggest other qualified people.
Congress member Manickam Tagore poked fun at the situation, implying that Buch might be replaced, thanks to Rahul Gandhi’s push for investor rights. Rahul Gandhi criticized Buch after Hindenburg raised issues about Adani Group’s stock practices.
Hindenburg claimed that Buch and her husband were linked to offshore funds and accused them of helping the Adani Group manipulate stock prices, leading to a significant drop in the company’s stock value. SEBI has also been investigating these claims but has faced scrutiny over how thoroughly it has done so.
In January, the Supreme Court dismissed calls for a further investigation into these allegations, stating there was no proof of SEBI’s failings, and in July, it also rejected a request to create a special team for investigation, noting that media reports weren’t reliable proof of any wrongdoing.
Recently, six Adani Group companies stated that they received notices from SEBI regarding possible breaches of stock market rules. Meanwhile, SEBI has also sent a warning to Hindenburg Research regarding alleged rule violations for short selling based on secret information, which Hindenburg called “nonsense.”
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