Securities and Exchange Board of India, India’s Adani Group, and the Trailblazing Madhabi Puri Buch
Madhabi Puri Buch made history in 2022 by becoming the first woman and the first private sector professional to chair the Securities and Exchange Board of India (SEBI). Her appointment was a significant milestone, not just for her personally, but for the broader financial sector in India. Prior to her appointment, SEBI had been traditionally led by individuals from the Indian Administrative Services (IAS) cadre. Buch’s ascension to this role marked a departure from this norm, signaling a shift towards more diverse leadership in India’s financial regulatory landscape. Her background in the private sector brought a fresh perspective to SEBI, which was evident in the various reforms and changes she implemented during her tenure.
Before joining SEBI, Buch had a successful career at ICICI Bank, one of India’s leading private sector banks. She joined ICICI as a project finance analyst and steadily rose through the ranks to become an executive director. During her time at ICICI, she was part of a batch of young management graduates recruited before the 1991 economic reforms in India. These reforms opened up new opportunities for ICICI to expand into multiple financial services, and Buch played a crucial role in leading the bank’s new housing finance unit. Her experience at ICICI not only shaped her professional skills but also instilled in her a strong drive for getting things done, a trait that would serve her well in her later roles.
In addition to her work at ICICI, Buch also gained valuable international experience. After the global financial crisis, she moved to Singapore to head business development at Greater Pacific Capital. This move was partly influenced by her husband’s career, as he had also relocated to Singapore for work. Her husband, Dhaval Buch, has had a successful corporate career and currently serves as a senior advisor at Blackstone and Alvarez & Marsal. Despite having no prior experience in private equity, he now advises private equity companies on procurement and supply chain-related topics. The couple also co-founded a financial services consulting firm named Agora Advisory in 2013, further showcasing their entrepreneurial spirit.
Buch’s appointment as SEBI chairperson came after a four-and-half-year stint as a whole-time member at SEBI, followed by a short break for personal reasons. During her time as a whole-time member, she was known for her tough and collaborative approach. She focused on data-driven decision-making and was not afraid to raise concerns about issues such as futures and options and SME valuation. Her tenure as a whole-time member prepared her to handle the market during times of uncertainty and maintain investor confidence. This experience was invaluable when she took on the role of SEBI chairperson, where she continued to prioritize data-driven decision-making and transparency.
One of the significant changes Buch brought to SEBI was the implementation of stricter regulations for mutual funds. She recognized the need for greater oversight in this area to protect investors and ensure good corporate governance. Under her leadership, SEBI also leveraged technology to crack down on market manipulators, demonstrating her commitment to maintaining the integrity of the financial markets. Her efforts in this regard were widely praised and helped to restore investor confidence in the regulatory body.
However, Buch’s tenure was not without controversy. In 2023, Hindenburg Research released a report alleging financial irregularities within the Adani Group, one of India’s largest conglomerates. The report put immense pressure on SEBI and the government to conduct a thorough investigation. Critics argued that Buch should have disclosed her stakes and investments in offshore funds before leading the inquiry into the allegations against the Adani Group. There were also accusations that SEBI had diluted and then deleted stricter rules for offshore funds during her tenure as a whole-time member, although some of these provisions were restored in 2023.
The Hindenburg report led to calls for an inquiry by a joint parliamentary committee, and the government’s own agencies, such as the CBI and Enforcement Directorate, faced criticism for their handling of the case. The situation put Buch in a challenging position, as she had to navigate the pressures of maintaining regulatory integrity while addressing the allegations against the Adani Group. It remains uncertain whether she will choose to resign or stay in her current position, but her response to this crisis will undoubtedly shape her legacy as SEBI chairperson.
Despite the controversies, Buch’s contributions to SEBI and the broader financial sector cannot be overlooked. She broke several barriers and implemented significant changes that have had a lasting impact. Her focus on data-driven decision-making, transparency, and investor protection has set new standards for market regulation in India. As the first woman and private sector professional to lead SEBI, she has paved the way for more diverse leadership in the future. Her journey from ICICI Bank to SEBI chairperson is a testament to her resilience, determination, and commitment to excellence.
Buch’s story is also a reflection of the broader changes taking place in India’s financial sector. The appointment of a private sector professional to a key regulatory position signifies a shift towards more inclusive and diverse leadership. This change is essential for fostering innovation and ensuring that the regulatory framework keeps pace with the evolving financial landscape. Buch’s tenure at SEBI has shown that diverse perspectives can lead to more effective regulation and better outcomes for investors and the market as a whole.
As India continues to grow and develop its financial markets, the role of SEBI will become increasingly important. The challenges faced by regulators are becoming more complex, requiring innovative solutions and a forward-thinking approach. Leaders like Madhabi Puri Buch, with their diverse backgrounds and expertise, are crucial for navigating these challenges and driving positive change. Her legacy at SEBI will serve as an inspiration for future leaders and a reminder of the importance of diversity and inclusion in the financial sector.
Looking ahead, it will be interesting to see how SEBI evolves under Buch’s leadership and beyond. The regulatory landscape is constantly changing, and SEBI must remain agile and responsive to new developments. Buch’s focus on data-driven decision-making and technology will likely continue to play a crucial role in shaping SEBI’s approach to regulation. Additionally, her commitment to transparency and investor protection will be essential for maintaining trust and confidence in the financial markets.
In conclusion, Madhabi Puri Buch’s tenure as SEBI chairperson has been marked by significant achievements and challenges. As the first woman and private sector professional to lead SEBI, she has broken new ground and set new standards for market regulation in India. Her focus on data-driven decision-making, transparency, and investor protection has had a lasting impact on the financial sector. Despite the controversies surrounding the Adani Group investigation, her contributions to SEBI and the broader financial sector cannot be overlooked. Buch’s story is a testament to the importance of diverse leadership and the positive changes it can bring to the financial markets.