Madhabi Puri Buch’s SEBI Tenure Ends: 4 Key Changes Made Under Her Leadership in Markets

Madhabi Puri Buch’s three-year tenure as Chairperson of the Securities and Exchange Board of India (SEBI) is set to conclude on March 1, 2025.

Madhabi Puri Buch, the first woman to lead the market regulator, implemented several structural changes aimed at enhancing market transparency, investor protection, and regulatory oversight.

Following the approval of the Appointments Committee of the Cabinet, Finance Secretary Tuhin Kanta Pandey has been appointed as the new Chairperson of SEBI.

Key Reforms Introduced by Madhabi Puri Buch

1. Stricter Oversight on Derivatives Trading

One of Buch’s most significant measures was restricting retail participation in derivatives trading. SEBI’s internal study revealed that households were losing nearly ₹60,000 crore annually in derivatives.

Despite resistance from industry players, SEBI imposed restrictions on futures and options (F&O) trading to protect retail investors from excessive risk.

2. Fast-Tracking Rights Issues

Under Buch’s leadership, SEBI streamlined the process for rights issues, making it faster and more efficient for companies to raise funds from existing shareholders.

The timeline for processing rights issues was significantly reduced from 126 days to just 20 days, facilitating quicker capital infusion for businesses.

3. New Investment Products for High-Net-Worth Individuals

SEBI introduced a new investment product category positioned between mutual funds and portfolio management services (PMS).

This move provided high-net-worth individuals (HNIs) with a new option for more tailored investment strategies, bridging the gap between traditional fund structures and customised portfolio management.

4. Introduction of Small & Medium REITs

To increase retail participation in real estate investments, SEBI launched Small & Medium Real Estate Investment Trusts (SM REITs).

The minimum asset size requirement was reduced from ₹500 crore to ₹50 crore, making it more accessible to investors and expanding opportunities within the real estate sector.

Conclusion

Madhabi Puri Buch’s tenure as SEBI Chairperson marked a period of transformative regulatory changes, aimed at bolstering investor confidence and market integrity.

With Tuhin Kanta Pandey now at the helm, the focus will be on sustaining these reforms and further strengthening India’s financial regulatory framework to support evolving market dynamics.

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