In a significant leadership transition, Tuhin Kanta Pandey, a seasoned IAS officer, has been appointed as the new Chairman of the Securities and Exchange Board of India (SEBI), succeeding Madhabi Puri Buch, whose tenure concludes today. Pandey, previously serving as Finance and Revenue Secretary, assumes control of SEBI at a time when the regulator is under intense scrutiny and facing demands for comprehensive reforms.
Buch’s Controversial Tenure and Quiet Exit
Madhabi Puri Buch made history as the first woman and the first individual from the private sector to lead SEBI. Her tenure was marked by ambitious reforms aimed at enhancing market transparency and investor protection. However, her leadership was also overshadowed by significant controversies that questioned the regulator’s integrity and effectiveness.
A pivotal controversy erupted following allegations by Hindenburg Research in August 2024, accusing Buch and her husband of holding undisclosed investments in offshore entities linked to the Adani Group. These allegations suggested potential conflicts of interest that could have compromised SEBI’s investigations into the conglomerate’s financial practices.
Both Buch and the Adani Group vehemently denied these claims, emphasizing their commitment to transparency and compliance. Despite the denials, the controversy fueled public outcry and led to widespread protests orchestrated by opposition parties, demanding an independent probe into the matter. The government’s decision not to renew Buch’s term, allowing her to retire quietly, has been perceived by some as an attempt to sidestep further controversy.
Who is Tuhin Kanta Pandey?
Pandey, a 1987-batch Odisha cadre IAS officer, is currently serving as the Finance Secretary and Revenue Secretary. He played a key role in India’s economic reforms, particularly in overseeing the strategic disinvestment of public sector enterprises, including the successful privatization of Air India and IDBI Bank. His expertise in financial markets and economic policy is expected to bring a fresh perspective to SEBI’s regulatory framework.
Previously, Shri Pandey, a 1987-batch Indian Administrative Service (IAS) officer of the Odisha cadre, held the charge of Secretary of three Departments, i.e., Department of Investment & Public Asset Management (DIPAM), since 24.10.2019, Department of Public Enterprises (DPE) since 01.08.2024 and Department of Personnel and Training since 04.11.2024. Both the DIPAM and DPE function under the Ministry of Finance.
Before serving as Secretary in the DIPAM, Shri Pandey has held many significant positions in Union Government and State Government of Odisha, in addition to serving a stint in the Regional Office of the United Nations Industrial Development Organisation (UNIDO).
In the Union Govt. his previous positions include Joint Secretary, Planning Commission (now NITI Aayog), Joint Secretary, Cabinet Secretariat and Deputy Secretary in Ministry of Commerce.
In State Govt. of Odisha, he served as administrative head in the Departments of Health, General Administration, Commercial Taxes, Transport and Finance. He also served as Executive Director of Odisha State Finance Corporation and Managing Director of Odisha Small Industries Corporation.
Shri Pandey holds a Masters in Economics from Panjab University, Chandigarh and an MBA from the University of Birmingham (UK)
Pandey Takes Charge Amid SEBI’s Testing Times
Pandey’s appointment comes at a critical time when SEBI is under intense scrutiny due to multiple regulatory and governance challenges. The market watchdog has been embroiled in controversies over its handling of corporate governance violations, alleged lapses in investigating stock market manipulations, and concerns over transparency in adjudicating high-profile cases.
One of the biggest concerns has been SEBI’s ongoing probe into alleged violations in the Adani-Hindenburg controversy, where the regulator has faced criticism over the pace and effectiveness of its investigations. Additionally, SEBI has been dealing with regulatory lapses in mutual funds, IPO monitoring, and governance issues in listed companies.
The Supreme Court and various market observers have also questioned SEBI’s approach in handling cases involving foreign portfolio investors (FPIs) and the delisting norms of certain large corporate houses. Meanwhile, regulatory bottlenecks in Algorithmic Trading (Algo Trading) and insider trading cases have added to SEBI’s mounting challenges.
Madhabi Puri Buch: A Controversial Tenure Ends
Madhabi Puri Buch, who made history as the first woman and first private-sector professional to lead SEBI, had a tenure marked by both bold reforms and regulatory controversies. While she introduced key policy changes to modernize market surveillance and enhance disclosure norms, her leadership also faced intense criticism over SEBI’s alleged inaction in major corporate frauds.
Her tenure came under fire primarily due to:
Allegations of a delayed response in the Adani-Hindenburg case, where SEBI was accused of being slow and ineffective in investigating claims of stock manipulation and governance lapses.
Lack of transparency in handling Foreign Portfolio Investors (FPIs), particularly in cases involving large corporate conglomerates and offshore fund movements.
Regulatory hurdles in the delisting of certain companies, leading to accusations of favoring select business houses.
Conflicts with key market players over SEBI’s stringent disclosure norms, which some industry leaders argued stifled market growth.
Despite these controversies, Buch was also credited with bringing a tech-driven approach to SEBI’s operations, strengthening data analytics for market surveillance, and tightening disclosure norms for Alternative Investment Funds (AIFs). While her next move remains unclear, industry sources suggest she may take up an advisory role in the financial sector or move into global regulatory bodies.
Selection Process and Key Contenders
Pandey’s selection followed a rigorous screening process, with several top bureaucrats and market experts in contention. Among the key candidates were:
– Ajay Seth (IAS: 1987: AM) – Secretary, Department of Economic Affairs
– Pankaj Jain (IAS: 1987: AM) – Secretary, Ministry of Petroleum & Natural Gas
– Ashwani Bhatia – Whole-Time Member, SEBI
– Anand Mohan Bajaj (IA&AS: 1990) – Deputy Comptroller and Auditor General (Former SEBI Member)
Ultimately, Pandey’s vast experience in financial policymaking and regulatory affairs made him the frontrunner for the role.
The Road Ahead for SEBI Under Pandey
Pandey’s Mandate: Restoring Trust and Strengthening Oversight
Tuhin Kanta Pandey, a 1987-batch Odisha cadre IAS officer, brings a wealth of experience in financial management and policy formulation. His notable achievements include spearheading the strategic disinvestment of public sector enterprises, such as the successful privatization of Air India and IDBI Bank. As he steps into his role as SEBI Chairman, Pandey faces the formidable task of restoring public trust in the regulator and addressing systemic challenges that have plagued India’s financial markets.
Key priorities for Pandey’s tenure are expected to include:
Enhancing Transparency: Implementing robustly disclosure norms to rebuild investor confidence and ensure accountability.
Strengthening Regulatory Oversight: Overhauling SEBI’s investigative processes to expedite action against market malpractices and prevent conflicts of interest.
Engaging Stakeholders: Fostering collaboration with market participants, policymakers, and the public to create a more inclusive and resilient financial ecosystem.
Pandey’s appointment signals a critical juncture for SEBI, as it seeks to navigate the complexities of modern financial markets while upholding its mandate to protect investors and maintain fair market practices. The coming years will be pivotal in determining whether this leadership change can effectively address past shortcomings and set a new course for India’s market regulator.
With financial markets becoming more complex and globalized, the new SEBI chief will need to restore faith in the regulatory ecosystem while ensuring that India’s capital markets remain robust and attractive for investors