Tuhin Kanta Pandey, the newly appointed Chairman of the Securities and Exchange Board of India (Sebi), is set to take office on Monday, and faces some serious challenges: restoring the credibility and prestige of the corner office at the markets retgulator and restoring the morale of employees at its head office in NSE House at BKC, Mumbai's business hub. As the 11th Chairman of Sebi, Pandey also steps in at a time when there are multiple challenges plaguing the market, including the ongoing stock sell-off, foreign institutional investors’ withdrawal of over Rs 2 lakh crore since October last year, the unfinished task of reining in finfluencers and unregistered investment advisors and a review of the delisting norms. Pandey is joining the Sebi at a time when the market has plummeted 18 per cent over the last five months and investor confidence has taken a beating. Restoring confidence There were a host of allegations about conflict of interest against Pandey’s predecessor Madhabi Puri Buch last year that raised doubts about the integrity of the chairperson, something that she has denied. In August last year, US-based short-seller Hindenburg Research, which has now been disbanded, alleged that Puri Buch and her Singapore-based husband, Dhaval Buch, had stakes in offshore funds used in the Adani money siphoning scandal. The couple had denied these allegations. Sebi had also come out in defence of its chairperson, stating that the regulator has adequate internal mechanisms for addressing issues related to conflict of interest, including a disclosure framework and provision for recusal. The Opposition Congress Party had also made a series of allegations about the consultancy services of the Buchs, raising questions over their integrity. Buchs refuted those allegations and described them as “false, incorrect, malicious and motivated”. Pandey, known to be an upfront, straight-talking officer, will also have to boost the morale of Sebi employees who were up in arms against the management in September last year. On September 6, Sebi officers staged another protest outside the regulator’s headquarters, demanding withdrawal of a press release about them. They also sought the resignation of Buch for “spreading lies” against employees, according to an internal agenda circulated among Sebi official. On September 16, heeding to their demands, Sebi withdrew the press release in which the regulator said that its employees were ‘misguided by external elements’ on issues related to house rent allowance. Retaining retail investor participation A major agenda before Pandey will be to retain the retail investor interest and confidence in the stock market amid the market volatility triggered by tariff wars and economic slowdown. Since September 26, 2024, when both indices touched record highs, Sensex has slid over 16 per cent, or 12,256 points, and Nifty has plummeted nearly 18 per cent, or 3,991 points. Retail investors are sitting on huge losses. Their investments in mutual funds have also eroded considerably. Another issue before Pandey will be to bring back foreign institutional investors to India. They have been major sellers since October last year and sold over Rs 2 lakh crore worth of stocks in the domestic market. The markets regulator is yet to rein in finfluencers and unregistered investment advisers who are taking investors for a ride using social media platforms. The review of delisting regulations is another unfished task before the Sebi. In short, the new Sebi chief has his task cut as he will have to ensure that the Indian capital market is healthy, without the menace of manipulations such as insider trading, front running and stock rigging. Bureaucrat back at helm Pandey’s appointment as Sebi chief marks the second major appointment of a bureaucrat as the head of a regulator, after Indian Administrative Services (IAS) officer Sanjay Malhotra appointment as the Reserve Bank of India (RBI) Governor in December 2024. Even though candidates from the private sector are learnt to have been considered for the post of Sebi Chairman, the final section of an IAS officer signifies a reposing of faith in bureaucracy by the government to manage critical institutions of the country. The appointment of the SEBI Chairman is made by the central government on the recommendation of the Financial Sector Regulatory Appointments Search Committee (FSRASC). Before being appointed as Revenue Secretary in January, Pandey had the charge of Secretary, DIPAM. Pandey, a 1987-batch Indian Administrative Service officer of Odisha cadre, had taken charge as Finance Secretary in September 2024 after his predecessor TV Somanathan was appointed as Cabinet Secretary. The charge of Finance Secretary is by convention given to the senior-most secretary amongst all the secretaries of the Ministry of Finance. Pandey, who holds a Master's degree in economics and an MBA, had earlier played a key role in finalising the sale of Air India as DIPAM Secretary. His appointment as Revenue Secretary just before Budget was seen as a crucial role for him, which he ably delivered as the government finalised the contours of the income tax relief measures and the nuances of the new Income-tax Bill. Before the present Sebi chief Buch, past chairmen of the markets regulator were either IAS officers or from public sector entities. Buch, who took over as the SEBI chief in March 2022, was the youngest, and the first person from the private sector, to be at the helm of the regulatory body.
