Sebi Chief Madhabi Buch Unlikely To Get Extension For Another Tenure

Securities and Exchange Board of India (Sebi) Chairperson Madhabi Puri Buch is unlikely to receive an extension when her current term ends on 28 February 2025, according to sources. This decision is reportedly influenced by the reputational damage to Sebi due to allegations made by Hindenburg Research against Buch.

Although the Union government and finance ministry view these allegations as weak, they are aware that extending her tenure could provide critics and the opposition with further grounds to question the government.

Buch is believed to have been unofficially informed that she will only serve one three-year term, having assumed her role on 1 March 2022.

An official source explained, "While the government supports Sebi and Buch during her tenure, extending her term could send the wrong message and have political consequences." Another source confirmed that Buch’s term is unlikely to be extended, emphasizing that regulators must remain above suspicion.

The Hindenburg allegations against Buch are considered less severe than those made against Adani. However, questions have been raised about whether the Buchs could have better managed their investments.

Buch’s predecessors, Ajay Tyagi and UK Sinha received extensions, serving for four and six years respectively. On 8 September, Buch and her husband, Dhaval, denied any wrongdoing, clarifying that they had invested in a fund promoted by IIFL Wealth Management as private Singapore-based citizens two years before Buch became a whole-time member of Sebi in 2017.

Sebi also issued a statement affirming that Buch made the necessary disclosures and recused herself from matters involving conflicts of interest, advising investors to remain calm and exercise caution regarding reports like Hindenburg's.