The central government has appointed Tuhin Kanta Pandey as the new Chairperson of SEBI, succeeding Madhabi Puri Buch after her three-year tenure. Buch, the first woman to helm the regulator assumed office on March 2, 2022, had her last working day on February 28 (Friday).
As per SEBI’s tradition, a farewell was expected for Buch on her final day, but this did not take place, leading to her abrupt exit. Her departure suggests she was unprepared for the transition. When she took charge in 2022, she likely did not anticipate such an unceremonious exit, according to a report by Zee News.
Madhabi Puri Buch’s last working day
Typically, SEBI organises farewell ceremonies for outgoing chairpersons, but Buch’s departure was marked by an unusual atmosphere. She did not visit the office on her final day, her exit was met with relief among SEBI employees due to longstanding dissatisfaction with her leadership, the report mentioned.
However, a Business Standard report stated that Buch was unwell with COVID-19, which prevented an in-person farewell. She reportedly bid farewell to SEBI virtually due to pandemic-related restrictions and a formal farewell will be held once she recovers.
One of the key reasons for employee resentment was Buch’s last-minute promotions of favored officials. In her final days, she promoted 15 General Managers (GMs) to the Chief General Manager (CGM) level and elevated her Executive Assistant, Murugan, to the same rank, Zee News report mentioned.
Regulations dictate that promotions should follow a hierarchical process across all levels, but Buch allegedly prioritized officers at the top, bypassing lower levels. This selective approach fueled widespread dissatisfaction among SEBI employees.
A controversial tenure
Buch’s final year at SEBI was marked by controversy. Employees had even staged protests outside SEBI’s Mumbai office, citing “unfair work practices.” Additionally, she faced allegations from Hindenburg Research and the Congress party. In August 2024, following Hindenburg’s accusations of a conflict of interest involving her and her husband’s foreign investments, pressure mounted on her to step down.
No extension for Buch
The SEBI Chief can serve for a maximum of five years or until the age of 65, whichever comes first. While the initial term is three years, an extension of up to two years is possible. Buch, at 60 years old, was eligible for an extension,
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