SEBI Chief Madhabi Puri Buch is retiring today, know how was her 3-year tenure?
India’s first woman SEBI chief Madhabi Puri Buch is retiring on March 1 after completing her three-year term. Finance Secretary Tuhin Kant Pandey will replace her. Buch has been in the news for some time recently over alleged conflict of interest. Buch, the first woman to lead SEBI, took charge on March 2, 2022 for a period of three years. She was also a full-time member of SEBI from April 2017 to March 1, 2022. Let’s know how Madhabi Puri Buch’s 3-year tenure was…
Big change in the rules of derivative trading
Buch became the head of SEBI when Ajay Tyagi retired. Buch took many big decisions, most of the decisions were implemented, some decisions could not be implemented. The decision to reduce the expense ratio of mutual funds could not be implemented. The most important thing about SEBI’s tenure is the new rules related to derivative trading. Apart from this, he emphasized on greater use of technology to increase surveillance. He promoted AI-based surveillance to prevent market manipulation.
Approval to REITs with small asset size
He also emphasized on making full use of technology for monitoring IPO filings and corporate submissions. He also took care of the changing needs of investors according to the changing times. The introduction of a new category of investment fund between mutual funds and portfolio management services (PMS) is an example of this. During his tenure, SEBI approved small and medium REITs with an asset size of Rs 50 crore. Earlier, the asset size of REIT was Rs 500 crore.
Processing time of rights issue reduced
Buch reduced the time taken in processing the rights issue of companies, it was reduced from 126 days to 20 days. This made it possible for companies to raise funds quickly. These are such reforms which will be remembered for a long time. He was concerned not only about corporates and operators but also retail investors. During her tenure, she always talked about protecting the interests of small investors.
Had to face challenges too
The SEBI chief also had to face many challenges during her tenure. American short selling firm Hindenburg Research made several allegations against the Adani Group during her tenure, which led to a major drop in the stock market. Later, Hindenburg also made serious allegations against the SEBI chief and her husband.
Serious allegations against Butch and husband
She said that Butch and her husband had concealed information about their investments in funds in Bermuda and Mauritius that were linked to Gautam Adani’s brother Vinod Adani. These funds were used for round tripping to increase stock prices. But, despite the controversies, the government allowed her to complete her tenure.
