The tenure of SEBI Chief Madhabi Puri Buch might come to an abrupt end, with strong indications that she may resign on October 6, 2024.
The development follows conflict-of-interest allegations triggered by a report from US short seller Hindenburg, which scrutinized her financial links through her spouse, Dhaval Buch, with the Mahindra Group.
The Congress party has alleged that Dhaval Buch received Rs 4.78 crore from Mahindra between 2019 and 2021, a period during which Madhabi Puri Buch was a full-time member of SEBI.
However, Mahindra has defended the payments, stating that the compensation was given solely for Dhaval Buch’s supply chain expertise and had no relation to his wife’s role at SEBI.
As the controversy continues to unfold, Madhabi Puri Buch was summoned to New Delhi on August 14, 2024, following Hindenburg’s report, which highlighted concerns about her impartiality.
During her visit, she is said to have met key figures in the capital, including officials at Raisina Hills, to present her defense.
Despite SEBI’s own findings indicating that Hindenburg’s earlier report had financially benefited entities unrelated to the Adani Group, the pressure on Buch has mounted, making her resignation a likely outcome.
In the aftermath of these events, speculation is rife regarding her potential successor. Former Chairman of State Bank of India (SBI), Dinesh Kumar Khara, is widely considered a front-runner for the SEBI Chairmanship once the selection process begins.
The controversy surrounding Madhabi Puri Buch is seen as a significant setback, especially in light of her efforts to enforce regulatory oversight during her tenure.
While SEBI’s own report has cleared her of direct wrongdoing in the Adani Group matter, the conflict-of-interest accusations related to Mahindra have placed her leadership under a cloud, making it unlikely that she will continue in her role for much longer.
The process for appointing the next SEBI chief is expected to start soon, and industry insiders suggest that Khara, with his extensive experience in banking and corporate governance, is a strong contender to lead the regulatory body through what could be a turbulent transition.
