SEBI Leadership Transition: New Chairperson to Be Appointed Soon
The Prime Minister’s Office (PMO) has received a shortlist of five candidates for the position of Chairperson of the Securities and Exchange Board of India (SEBI). The new appointee is expected to take charge on March 3, 2025, following the completion of Madhabi Puri Buch’s term on March 1, 2025.
As the first woman to lead SEBI, Buch’s three-year tenure, which began in March 2022, was marked by significant regulatory challenges and leadership milestones. The government is now poised to announce her successor, who will play a crucial role in shaping the future of India’s capital markets.
Candidates in the Running for SEBI Chairperson
The position of SEBI Chairperson features five select candidates that organizations have shortlisted for consideration. Secretary of Economic Affairs Ajay Seth and Ashwani Bhatia, who is a full-time member of SEBI, are considered among the most qualified candidates. The government considers these five individual candidates to replace Madhabi Puri Buch in running SEBI while making history as its first female chair. The government will announce a selection of the SEBI Chairperson in the forthcoming days before Madhabi Puri Buch ends her tenure on March 1.
In January 2025, the government started looking for a new SEBI chairperson until the application deadline of February 17, 2025. The Finance Ministry released an official recruitment post requiring applicants to demonstrate at least 25 years of practical experience in law and finance, together with economics, accountancy, and administration. Financial interests must be absent from any new appointee’s portfolio because they would hinder the Chairperson’s duties.
Challenges Faced by Madhabi Puri Buch
One of Madhabi Puri Buch’s most prominent terms as regulator included important regulatory leadership and multiple challenges in her role. Criticism against her leadership emerged because of Hindenburg reports and open resistance from Congress’s political party. Despite the controversies, the government has permitted Sebi’s chairperson to finish her entire term, even though her service extension remains ineligible.
Buch’s appointment was notable because she was the first person in SEBI’s 36-year history to have a background in the private sector, having held leadership roles at ICICI Bank and ICICI Securities. This background was viewed as a strength in some quarters, while others questioned the suitability of a private-sector background for a government regulatory role.
As Buch’s term ends, the government has leaned toward appointing a senior bureaucrat as her successor. The Finance Ministry’s regulatory appointments search committee led by the Cabinet Secretary delivered its suggestions to the Union Cabinet. The selection process for the appointment is expected to conclude during the upcoming few days.
SEBI’s Leadership Transition
The three-year period is standard for SEBI Chairperson terms although the ministry sometimes approves extra terms. UK Sinha and Ajay Tyagi occupied the Chairperson role for six and five years consecutively until their terms expired. The government has deviated from its current position regarding leadership transition by granting extended tenures in specific situations.
The upcoming Chairperson of India’s securities market regulation will be responsible for leading market oversight and initiating regulatory changes. The SEBI Chairperson carries substantial responsibilities so the government must thoughtfully select the next appointee to define the future path of financial regulation in India.
