Madhabi Puri Buch, the chairperson of Securities and Exchange Board of India (SEBI), during an interview with Saurav Majumdar, Editor at Business Today, at the BT MPW 2023 event, shared her unique perspective as the first private sector person and woman to lead SEBI. She highlighted on the changes she introduced during her two-year tenure.
Reflecting on her earlier role as a whole-time member, Madhabi Puri Buch discussed the delicate balance required to merge the public sector's accountability with the private sector's entrepreneurial spirit within SEBI.
Madhabi Puri Buch, a fervent advocate for technology, provided insights into SEBI's strategic use of technology to monitor markets efficiently. She underlined the importance of data in reducing costs, managing risks, and enhancing customer satisfaction. She said, "You either manage to delight the customer or manage risk. Nowhere did we have this ability to actually optimise on all of this and actually get that perfect balance of these three, so to me, technology is really magical, which is why I'm really passionate about it. (Video - 5:57 - 6:34)
Leveraging her extensive market experience, Madhabi Puri Buch delved into how her firsthand understanding of market intricacies empowered SEBI's regulatory capabilities, enabling a more informed and effective approach.
In response to being the first woman chairperson, Madhabi Puri Buch downplayed gender-centric challenges, emphasising her focus on professionalism and merit. She discussed her collaborative experiences within SEBI and with market participants. She said, "You were a professional, you had a role to play, you had deliverables to deliver on. You did your job. I didn't find it very different in SEBI. So to me, gender was never a thing. I had a great Boss. He was very empowering. Did I see any difference in the way he treated me or treated my three other colleagues? Absolutely none."
Madhabi Puri Buch detailed SEBI's innovative approach to gender representation, introducing the BRC code. This code emphasises metrics like the percentage of payroll costs allocated to women, ensuring a holistic approach beyond token board appointments.
Madhabi Puri Buch underscored SEBI's commitment to trust-building through governance standards. She outlined the regulator's minimalist approach, primarily centred on robust disclosure requirements and approval stipulations for related party transactions. "I think that the fundamental approach that SEBI takes to foster that trust, is disclosure. Our view is that Sebi should not be interfering in what a company does or does not do. It only asks for things on behalf of the investor, because the investors are diffused, they do not have bargaining power. The regulators are representing the investors," she said.
Looking ahead, Madhabi Puri Buch shared her vision for the future. She discussed plans to institutionalise changes within SEBI and expressed a strong commitment to advancing financial inclusion. She shared ongoing efforts to make investment products, such as mutual funds, more accessible to retail investors. She said, "My effort going forward in the next year will be to institutionalise the changes that we have brought in the external marketplace. I think the most important piece that I would like to see happening is greater financial inclusion."
Madhabi Puri Buch highlighted India's market resilience during global financial challenges. She discussed how domestic flows and retail investments played a pivotal role, attracting foreign investors back to India and elevating the country's share in global indices. Buch said, "Our share in the global indices went up. The people who left India started underperforming their benchmark index because we were roaring thanks to domestic demand, and they had left, so they were missing out on the Indian returns. And very soon they actually came back because they could not afford to miss out on the Indian returns." (20:16 - 21:05)
In summary, Madhabi Puri Buch's detailed conversation covered a spectrum of topics, offering valuable insights into her leadership, SEBI's initiatives, and the broader landscape of the Indian financial markets.
BT Magazine's special issue on BT MPW 2023 - On Stands Now
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