At a time when the regulator of the markets is on the verge of its order on the collapse of governance at the country’s largest stock exchange, the National Stock Exchange, the Union’s Cabinet Appointments Committee, on Monday -bank of the securities market executive. Madhabi Puri Buch as new chairman of the Securities & Exchange Board of India (SEBI).
Ms. is not just. She was the first woman to lead SEBI in over 30 years since its inception, but was the first former high – level private sector executive to lead the regulator of markets.
The IIM-Ahmedabad alumna, who headed SEBI on March 2, is not a complete stranger to the governor, however, having spent more than four years – between April 2017 and October 2021 – as a full-time member. During that time, she oversaw the extension of a wide range of portfolios from market regulation and surveillance and market intermediaries to economic and policy analysis, and at the National Institute of Securities Markets and Information Technology.
This combination of deep insight and tactile experience gained from the three decades spent by Ms. Buch has worked in a variety of capacities in the private financial sector and the securities industry and the more contemporary understanding of the regulator’s perspective could give her a good position. and SEBI tackling the challenges of modern day regulation.
“Given her wealth of experience in the capital markets and financial services space, she understands the pulse of the markets and knows what a market regulator should be,” said Sankar Chakraborti, Group CEO, Acuité Ratings and Research.
“As a former member of the SEBI technology committee, her appointment can further boost India’s digital transformation. And now that the state of sustainability in India is changing paradigm, its flexibility to get things done and its acceptance of new ideas could help investor protection, corporate governance and disclosure, ”he said.
She will be appointed for a ten-year tenure, and her task will be cut in many areas.
Welcoming the appointment of a woman and an individual with no background in government or public sector business, JN Gupta, managing director of Stakeholders Empowerment Services advisory proxy and former executive director of SEBI, said that Ms. A trait for the job that was desperately needed.
“Because of the limited interactions I had with her when she was with ICICI Securities, I understand that she is full of energy, ideas and no words. This is necessary for transparency, ”he said.
The immediate challenge, according to Mr Gupta, is to “restrict the outcome of the NSE issue which has been overlooked by some media. In my opinion, there is nothing beyond what SEBI has done in this regard, ”he confirmed.
As a corollary, “her next challenge will be to increase the morale of SEBI officers who have been unnecessarily targeted,” he said.
The SEBI brief has also been expanded in recent years and the new holder at the top will need to quickly adapt the regulator’s approach to the different needs of different sectors.
Apart from regulating the capital and commodity markets, SEBI will now regulate the Gold Spot Exchange, Special Purpose Purchasing Companies (SPACs), and the Social Stock Exchange among others. With the policies in place for all of these financial intermediaries in place, the regulator will now have to oversee the implementation of these new items.
For someone who describes herself confidently as “committed to data empowerment and risk and compliance” it is hoped that Ms. SEBI buys to take a more data-centric and technology-closer approach in exercising its regulatory mandate. “Ms. Buch brings with it the much-needed experience of capital markets as an outsider and insider, ”said Sunil Sanghai, chairman of the FICCI Capital Markets Committee, in a statement. “The securities market is a highly specialized field in which its vast experience in the private and public sector will be invaluable,” he said.
With markets around the world currently suffering greatly as a result of the Russian invasion of Ukraine and the consequent sanctions on Moscow, Ms. will need all her experience. Buch to help calm investors’ nerves even as it seeks to reaffirm the priority of governance standards by companies and markets. intermediaries.
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