Madhabi Puri Buch Explained

Madhabi Puri Buch
Office:Chairperson of the Securities and Exchange Board of India
Predecessor:Ajay Tyagi
Spouse:Dhaval Buch

Madhabi Puri Buch (born 1966) is an Indian businesswomen who is the chairperson of the securities regulatory body in India, Securities and Exchange Board of India (SEBI). She is the first woman to lead SEBI, and the first person from the private sector to be appointed to this position.[1] [2]

From April 2017 to March 2022, she functioned as a whole time member of SEBI, and was responsible for important regulatory orders. Buch has been credited with bringing rapid changes that improved the system as well as improved the efficiency of the regulatory body.[3]

In August 2024, Hindenburg Research, a short-selling activist firm, accused her and her husband of having a stake in dubious offshore entities used to artificially inflate shares of companies owned by the Adani Group.[4] They denied the claims.[5] [6]

Education

Buch was educated at Fort Convent School, Mumbai, and at Convent of Jesus and Mary, Delhi.[7] She graduated with a specialization in Mathematics from the St. Stephen's College, Delhi,[8] and later went on to obtain an MBA from IIM Ahmedabad.[9] [10]

Career

Corporate career

Her career started in 1989 with ICICI Bank. Between 1993 and 1995, Buch worked as lecturer at West Cheshire College in England. She worked in various profiles across companies for 12 years, including sales, marketing and product development.[11] She also led operations. In 2006 she joined ICICI Securities and later went on to become their CEO from February 2009 to May 2011. After this, Buch moved to Singapore to join Greater Pacific Capital in 2011. Between 2011 and 2017 she worked in various capacities as executive director of many companies like Zensar Technologies, InnoVen Capital, and Max Healthcare. Buch also served as an independent director of the Indian School of Development Management (ISDM) and as consultant for New Development Bank (BRICS bank).[12]

Career at SEBI

In April 2017, Buch was appointed as a whole time director at SEBI and given charge of portfolios like collective investment schemes, surveillance and investment management.[13] When her tenure ended, she was appointed to a seven-member technology committee formed to help SEBI design in-house technological systems. Known for her technology and data agnostic attitude, Buch has passed a few landmark regulatory orders. In 2018, she passed an order against the Sahara Group to return the Rs.14,000 crore raised from investors through fully convertible debentures. This was after they violated a SEBI order asking them to furnish the details of repayment to investors. In January 2021, Buch conducted a detailed investigation into insider trading by CNBC Awaaz journalist Hemant Ghai and barred him, his mother and wife from accessing the stock markets.[14] [15] In May 2021, she passed an order against Savla and Ajitkumar for sharing unpublished price sensitive information of Deep Industries stock on the basis of their connection and interaction on social media platform.[16] In August 2021, she identified 15 entities trading in unfair practices in the Zee Entertainment Enterprises stock post its results announcements.[17]

On 1 March 2022, Buch was appointed as the SEBI chairperson for a period of 3 years. She replaced Ajay Tyagi.[18] [19] Joining SEBI at a challenging time, Buch was questioned by the parliamentary committee in reference to the NSE co-location scam.[20] Being a person from the private sector herself, Buch decided to undertake an overhaul of the organization to improve productivity, enhance accountability and improve fairness at SEBI.[21] In her first 100 days as chairperson, she has brought about rapid changes in the organization, processes and regulation of the markets. Buch introduced the corporate system of KRAs to drive focused action on areas that needed attention. She emphasized on cyber security and use of technology and data. She has driven the process of seeking extensive market feedback on any key policy changes. Observers say that Buch has put onus on intermediaries to make changes to their systems to evolve with market dynamics. When she took over, the securities market in India followed a T+2 clearance process. She pushed custodians and clearing corporations to gear up for the T+1 and T+0 clearance process, which would lead to investors receiving their money and shares faster. In 2024, the T+0 settlement system was introduced in a phased manner.[22] Buch also sought additional powers from the government to monitor social media channels to crack down on front running in the markets.

Hindenburg allegations

In August 2024, Hindenburg Research, a short-selling activist firm, accused Puri Buch and her husband of having a stake in offshore entities which invested money into India. They alleged that these same funds, managed by IIFL Wealth, were used by Vinod Adani to artificially inflate shares of companies owned by the Adani Group.[4] This put Buch into the spotlight, since SEBI had previously faced difficulties in finding out the beneficial owners of similar off-shore funds that had invested in Adani companies.[23] [24] [25]

Response

The couple refuted the allegations made against them and said that all disclosures have already been furnished to SEBI over the years. They also issued a statement a day after the report was released, detailing that the fund did not invest in any securities involving the Adani Group when they were invested, and that they had invested in the fund since the fund manager was a close friend.[26] [27] Buch termed Hindenburg’s allegations an attempt at “character assassination” after the regulator’s enforcement action and “show cause” notice to the short seller for violating Indian rules.[28]

Adani Group calls the claims "malicious, mischievous".[29] India's Leader of the Opposition in the Lok Sabha, Rahul Gandhi, asked Buch to resign.[30] [31]

Personal life

Buch was born in 1966 as Madhabi Puri to Kamal Puri and his wife.[32] Her father worked for the corporate sector while her mother was an academic with doctorate in political science.[33] At the age of eighteen she got engaged to Dhawal Buch who was a director at FMCG multinational, Unilever. They got married when she turned 21 and subsequently gave birth to her son, Abhay. Buch says she owes much of her success to her son and her husband who has been her friend, philosopher and guide.[34] [35]

Buch was one of the survivors of the 26/11 Mumbai terrorist attacks. She was with her husband at the Taj Mahal Palace Hotel who was attending a Unilever meeting at that time.[36] [37]

References

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  2. News: Mishra . Lalatendu . 2022-03-06 . Madhavi Puri Buch . live . https://web.archive.org/web/20220306182136/https://www.thehindu.com/news/national/madhavi-puri-buch/article65192846.ece . 2022-03-06 . 2022-04-28 . . en-IN . 0971-751X.
  3. Web site: Modak . Samie . How Madhabi Puri Buch Is Changing Sebi . 2022-06-21 . Rediff . en . 2022-06-21 . https://web.archive.org/web/20220621025447/https://www.rediff.com/business/report/how-madhabi-puri-buch-is-changing-sebi/20220620.htm . live .
  4. Web site: 2024-08-10 . Whistleblower Documents Reveal SEBI’s Chairperson Had Stake In Obscure Offshore Entities Used In Adani Money Siphoning Scandal . live . https://web.archive.org/web/20240810163305/https://hindenburgresearch.com/sebi-chairperson/ . 2024-08-10 . 2024-08-10 . . en-US.
  5. News: 2024-08-10 . SEBI chief Madhabi Buch, husband deny Hindenburg charge as ‘baseless’; Adani Group says allegations ‘malicious, mischievous’ . 2024-08-11 . . en-IN . 0971-751X . 2024-08-10 . https://web.archive.org/web/20240810223050/https://www.thehindu.com/news/national/sebi-chief-madhabi-buch-husband-deny-hindenburg-allegations-as-baseless/article68510890.ece . live .
  6. News: 2024-08-11 . Sebi chief, husband reject Hindenburg allegations: 'Our life and finances are an open book' . 2024-08-11 . . 0971-8257 . 2024-08-11 . https://web.archive.org/web/20240811052557/https://timesofindia.indiatimes.com/business/india-business/sebi-chief-husband-reject-hindenburg-allegations-our-life-and-finances-are-an-open-book/articleshow/112437997.cms . live .
  7. News: Who is Madhabi Puri Buch, the first woman to head market regulator Sebi? . cnbctv18.com . 28 February 2022 . en.
  8. News: 2022-02-28 . Who is Madhabi Puri Buch, the first woman to head market regulator Sebi? . 2024-08-11 . . en . 2024-03-17 . https://web.archive.org/web/20240317123801/https://www.cnbctv18.com/market/who-is-madhabi-puri-buch-the-first-woman-to-head-market-regulator-sebi-12653912.htm . live .
  9. Web site: Gawande . Jayshree P. Upadhyay,Priyanka . 2022-02-28 . Know the Sebi chairperson, Madhabi Puri Buch . live . https://web.archive.org/web/20240813202252/https://www.livemint.com/companies/news/know-the-sebi-chairperson-madhabi-puri-buch-11646056612248.html . 2024-08-13 . 2022-04-28 . . en.
  10. Web site: 2022-02-28 . All you want to know about Madhabi Puri Buch, the first-ever woman to head SEBI . 2022-04-28 . . en-IN . 2022-04-28 . https://web.archive.org/web/20220428040806/https://www.gqindia.com/get-smart/content/all-you-want-to-know-about-madhabi-puri-buch-the-first-ever-woman-to-head-sebi . live .
  11. News: Vanamali . Krishna Veera . 2022-03-02 . Who is Madhabi Puri Buch, the new SEBI chief? . Business Standard India . 2022-05-30 . 2022-05-30 . https://web.archive.org/web/20220530044039/https://www.business-standard.com/podcast/current-affairs/who-is-madhabi-puri-buch-the-new-sebi-chief-122030200075_1.html . live .
  12. Web site: 2022-02-28 . Who is Madhabi Puri Buch, the first woman to head market regulator Sebi? . live . https://web.archive.org/web/20220428040806/https://www.cnbctv18.com/market/who-is-madhabi-puri-buch-the-first-woman-to-head-market-regulator-sebi-12653912.htm . 2022-04-28 . 2022-04-28 . . en.
  13. Web site: 28 February 2022 . Who is Madhabi Puri Buch, the first female head of SEBI? . 2022-04-28 . . en.
  14. Web site: SEBI Confirms Ban Order against CNBC Awaaz Ex-Co-host Hemant Ghai, His Wife and Mother . 2022-04-28 . Moneylife NEWS & VIEWS . en . 2022-04-28 . https://web.archive.org/web/20220428050040/https://www.moneylife.in/article/sebi-confirms-ban-order-against-cnbc-awaaz-ex-co-host-hemant-ghai-his-wife-and-mother/65039.html . live .
  15. Web site: SEBI debars host of CNBC Awaaz show . https://web.archive.org/web/20220428050040/https://www.sify.com/finance/sebi-debars-host-of-cnbc-awaaz-show-news-topnews-vbsdembhgbaff.html . dead . April 28, 2022 . 2022-04-28 . . en.
  16. News: Zachariah . Reena . Sebi order kicks off storm; social media links can't prove insider trading . live . https://web.archive.org/web/20220428051008/https://economictimes.indiatimes.com/markets/stocks/news/sebi-order-kicks-off-storm-social-media-links-cant-prove-insider-trading/articleshow/63919102.cms . 2022-04-28 . 2022-04-28 . The Economic Times.
  17. Web site: 28 February 2022 . 3 most striking orders issued by new SEBI chief Madhabi Buch . 2022-04-28 . . en-IN.
  18. Web site: SEBI Former Chairmen / WTMs of SEBI . live . https://web.archive.org/web/20240802192938/https://www.sebi.gov.in/sebiweb/boardmember/BoardMemberAction.do?doFormerMember=yes . 2024-08-02 . 2024-08-10 . SEBI.
  19. News: Shah . Palak . 2022-03-02 . Madhabi Puri Buch replaces Ajay Tyagi as SEBI chief . live . https://web.archive.org/web/20220228112005/https://www.thehindubusinessline.com/markets/madhabi-puri-buch-replaces-ajay-tyagi-as-sebi-chief/article65092299.ece . 2022-02-28 . 2024-08-10 . . Madhabi Puri Buch, who will take over the reins of the Securities and Exchange Board of India (SEBI) on Tuesday from outgoing chairman Ajay Tyagi.
  20. Web site: SEBI chairperson Madhabi Puri Buch likely to be questioned on NSE scam by parliamentary panel . 2022-04-28 . The New Indian Express . 3 April 2022 . 2022-04-28 . https://web.archive.org/web/20220428042558/https://www.newindianexpress.com/nation/2022/apr/03/sebi-chairperson-madhabi-puri-buch-likely-to-be-questioned-on-nse-scam-by-parliamentary-panel-2437503.html . live .
  21. Web site: Upadhyay . Jayshree P. . 2022-05-30 . Sebi's Buch taps pvt sector experience to boost productivity . 2022-05-30 . . en-IN . 2022-05-30 . https://web.archive.org/web/20220530014945/https://www.livemint.com/market/sebis-buch-taps-pvt-sector-experience-to-boost-productivity-11653850843287.html . live .
  22. News: Nagasundaram . Dhanya . 2024-03-28 . T+0 settlement kick starts today. What does it mean? How does it affect you? . live . https://web.archive.org/web/20240328064724/https://www.livemint.com/market/stock-market-news/t0-settlement-kick-starts-today-what-does-it-mean-how-does-it-affect-you-11711594988012.html . 2024-03-28 . 2024-08-11 . Live mint.
  23. Web site: Mukherjee . Andy . 12 August 2024 . Hindenburg Steps Up for Adani Round Two. With SEBI . live . https://web.archive.org/web/20240813202253/https://www.bloomberg.com/opinion/articles/2024-08-12/hindenburg-s-latest-adani-report-is-great-political-fodder?accessToken=eyJhbGciOiJIUzI1NiIsInR5cCI6IkpXVCJ9.eyJzb3VyY2UiOiJTdWJzY3JpYmVyR2lmdGVkQXJ0aWNsZSIsImlhdCI6MTcyMzQyNDgzMCwiZXhwIjoxNzI0MDI5NjMwLCJhcnRpY2xlSWQiOiJTSTJZU0JUMEFGQjUwMCIsImJjb25uZWN0SWQiOiI3MEFDQzU0Q0Y5NjE0OENEOTFBOTlFMjBGNkQ4N0ZDRiJ9.6PP221PwPlyuMTzFMecvdQbjSttz9zYeu3OQ9n4gkgo . 13 August 2024 . 12 August 2024 . bloomberg.com . Bloomberg.
  24. Web site: 15 July 2024 . SC rejects plea to review its January verdict upholding SEBI probe into Adani-Hindenburg case . live . https://web.archive.org/web/20240813202254/https://www.thehindu.com/news/national/sc-rejects-plea-to-review-its-january-verdict-upholding-sebi-probe-into-adani-hindenburg-case/article68407295.ece . 13 August 2024 . 12 August 2024 . thehindu.com . The Hindu.
  25. Web site: Dr Dhananjaya Y Chandrachud, Chief Justice of India . 2024-01-03 . Judgement in Vishal Tiwari vs Union of India & Ors. . live . https://web.archive.org/web/20240417190328/https://main.sci.gov.in/supremecourt/2023/5354/5354_2023_1_1501_49132_Judgement_03-Jan-2024.pdf . 2024-04-17 . 2024-08-12 . .
  26. News: 2024-08-11 . Hindenburg-Adani Case: SEBI chief Madhabi Puri Buch, husband’s 15-point rebuttal to allegations, ‘attempting to attack’ . live . https://web.archive.org/web/20240811152557/https://www.livemint.com/market/stock-market-news/hindenburgadani-case-sebi-chief-madhabi-puri-and-husband-dhaval-buch-respond-to-allegations-attempting-to-attack-11723375754189.html . 2024-08-11 . 2024-08-11 . Mint.
  27. News: 2024-08-11 . Hindenburg vs SEBI: Madhabi Puri Buch, husband issue detailed rebuttal against allegations . live . https://web.archive.org/web/20240811135307/https://www.thehindu.com/business/markets/hindenburg-attacking-credibility-attempting-character-assassination-sebi-chief-madhabi-husband-issue-detailed-rebuttal/article68513015.ece . 2024-08-11 . 2024-08-11 . . en-IN . 0971-751X.
  28. News: 2024-08-12 . $2.4 billion wiped off Adani shares after Hindenburg allegations against regulator . live . https://web.archive.org/web/20240812102214/https://www.reuters.com/markets/asia/indias-adani-shares-drop-after-hindenburg-allegations-sebi-chairs-past-2024-08-12/ . 2024-08-12 . 2024-08-12 . Reuters.
  29. News: 2024-08-10 . SEBI chief Madhabi Buch, husband deny Hindenburg charge as ‘baseless’; Adani Group says allegations ‘malicious, mischievous’ . 2024-08-14 . . en-IN . 0971-751X.
  30. News: 11 August 2024 . ’If investors lose their…’: Rahul Gandhi targets SEBI’s Madhabi Puri Buch, PM Modi and Adani over Hindenburg allegations . live . https://web.archive.org/web/20240811153550/https://www.livemint.com/market/stock-market-news/why-hasn-t-sebi-chairperson-madhabi-puri-buch-resigned-asks-rahul-gandhi-amid-hindenburg-adani-case-gautam-adani-modi-11723386070233.html . 2024-08-11 . 2024-08-11 . . Livemint.
  31. News: 11 August 2024 . Rahul Gandhi warns of stock market risk after new Hindenburg report on SEBI chief: ‘Umpire is compromised’ . live . https://web.archive.org/web/20240813202258/https://www.hindustantimes.com/india-news/rahul-gandhi-warns-of-stock-market-risk-after-new-hindenburg-report-umpire-is-compromised-101723387115466.html . 13 August 2024 . 11 August 2024 . .
  32. Web site: 2022-03-02 . Who is Madhabi Puri Buch, the new SEBI chief? . live . https://web.archive.org/web/20220707005206/https://www.business-standard.com/podcast/current-affairs/who-is-madhabi-puri-buch-the-new-sebi-chief-122030200075_1.html . 2022-07-07 . 2023-03-30 . . en-US.
  33. Web site: 'I always wanted to be able to make a difference' . live . https://web.archive.org/web/20220810050947/https://specials.rediff.com/getahead/2009/mar/05slide1-madhabi-puri-buch-you-can-always-make-a-difference.htm . 2022-08-10 . 2022-04-28 . Rediff.
  34. Web site: 2022-02-28 . Madhavi Puri Buch: Sebi's new boss knows how to go off the beaten path . 2022-04-28 . Bulls Trade . en-US .
  35. News: 2024-08-10 . Who is Dhaval Buch, SEBI chairperson's husband named in Hindenburg report? . live . https://web.archive.org/web/20240810185249/https://www.hindustantimes.com/india-news/who-is-dhaval-buch-sebi-chairpersons-husband-named-in-hindenburg-report-101723309953488.html . 2024-08-10 . 2024-08-10 . Hindustan Times.
  36. Web site: 2022-03-01 . Madhavi Puri Buch: Sebi's new boss knows how to go off the beaten path . live . https://web.archive.org/web/20220428042233/https://www.financialexpress.com/market/madhavi-puri-buch-sebis-new-boss-knows-how-to-go-off-the-beaten-path/2447210/ . 2022-04-28 . 2022-04-28 . . en-IN.
  37. Web site: The new chairperson of market regulator SEBI: Madhabi Puri Buch, biography, Family, Education, Career and Contact . live . https://web.archive.org/web/20220519173340/https://www.jagrantv.com/en-show/the-new-chairperson-of-market-regulator-sebi-madhabi-puri-buch-biography-family-education-career-and-contact-rc1028378 . 2022-05-19 . 2022-04-28 . . en.

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