The last bell rings for Sebi chief Madhabi Puri Buch today. A look at her 3-year career

Buch, the first woman and first private-sector executive to helm Sebi, pushed through significant market reforms, including curbs on retail derivatives trading and tighter oversight on brokers. However, her tenure was also marred by allegations of conflicts of interest, accusations of over-regulation, and internal dissent within the institution.

Market reforms and crackdowns

Under Buch’s leadership, Sebi cracked down on high-risk retail participation in the derivatives market, imposing restrictions despite pushback from industry players. The move, aimed at limiting household exposure to risky financial products, led to a sharp drop in trading volumes.

Buch also introduced stricter norms for stockbrokers in the wake of the Karvy Stock Broking scandal. She was a whole-time member at Sebi when the Karvy fiasco broke out, and after she became the Sebi chief, the watchdog worked at minimizing broker access to client funds and mandating uniform fee structures to enhance transparency. Additionally, Sebi fast-tracked the rights issue process, cutting the timeline from 126 days to 20 days, enabling quicker capital raising for companies.

The Sebi chief also championed the use of artificial intelligence in Sebi’s surveillance mechanisms, pushing for algorithmic monitoring of market transactions, corporate disclosures, and IPO filings to detect irregularities.

Missed targets and industry pushback

Despite her aggressive regulatory agenda, not all of Buch’s initiatives saw success. A proposal to reduce mutual fund expense ratios, which would have lowered costs for retail investors, was shelved following industry lobbying.Buch’s tenure saw an unprecedented surge in regulatory activity, with Sebi issuing over 180 consultation papers—far more than her predecessors—prompting criticism from businesses over increasing compliance burdens.

Controversies and conflict allegations

Buch’s tenure was fraught with controversies, with allegations of conflicts of interest surfacing from multiple quarters. U.S.-based short-seller Hindenburg Research accused her of having financial ties to offshore funds linked to the Adani Group, claims she and Sebi denied.

Additionally, opposition leaders in the Lok Sabha alleged that Buch engaged in stock trading during her tenure at Sebi, disposing ICICI Bank employee stock options while in office, and earning income through her consultancy firm advising listed companies—potentially breaching the regulator’s conflict of interest policy. Both Buch and Sebi issued statements refuting these claims.

Internal unrest also marred Buch’s leadership, with Sebi employees formally complaining to the finance ministry about what they called a “toxic work culture”.

High-profile investigations

During Buch’s term, Sebi oversaw critical investigations, including probes into the Adani Group’s alleged stock manipulation and regulatory breaches. The watchdog also took enforcement action against high-profile figures such as Anil Ambani and Ketan Parekh, barring them from the markets over financial misconduct.

As Buch steps down, Sebi’s next leadership will inherit a market reshaped by her reforms—but also a regulator grappling with industry resistance, legal challenges, and the need for stronger internal governance.

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