SEBI’s first woman Chairperson

March 1, 2022

On February 28, 2022, the government appointed Madhabi Puri Buch as the new chairperson of SEBI.

Key Facts

Madhabi Puri Buch is the first woman chairperson of the Securities and Exchange Board of India (SEBI).
She was the former head of ICICI Securities.
In between 2017 to 2021, she also served in SEBI, as a Whole Time Member.
Now, she will replace Ajay Tyagi as the chairperson of SEBI. Tenure of Ajay Tyagi ended on February 28.

About Ajay Tyagi

Ajay Tyagi is a 1984 batch IAS officer from Himachal Pradesh cadre. He was appointed as SEBI Chairperson for three years, on March 1, 2017. He was given a six-month extension. Later in August 2020, his tenure was extended by 18 months.

Background

In October 2021, Finance Ministry had invited applications from eligible candidates for the post of SEBI Chairperson. Deadline to submit the form was December 6, 2021.

How candidates are shortlisted?

As per the procedure for appointment of regulators, candidates are shortlisted by Financial Sector Regulatory Appointments Search Committee (FSRASC), which is headed by Cabinet Secretary. Shortlisted candidates are interviewed by panel, consisting of Economic Affairs Secretary and three external members with domain knowledge. Apart from that, a high-level panel is authorized to recommend names other than those applying for the advertised post. On the basis of interactions, FSRASC recommends the name to Appointments Committee of Cabinet headed by Prime Minister.

Financial Sector Regulatory Appointment Search Committee

FSRASC was set up as a “standing committee”, on the basis of the recommendation of Financial Sector Legislative Reforms Commission. It was set up to “recommend suitable persons for Chairperson, Whole Time members, and Part Time Members of the financial sector regulators.” It was set up with the objective of adopting a uniform selection process for all financial sector regulators.

Members of FSRASC

It is headed by Cabinet Secretary. Other members include:
Additional Principal Secretary to the Prime Minister
Secretary of Department of Economic Affairs or Department of Financial Services.
Chairperson of the concerned regulatory authority and
Three outside experts.

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