The appointment of Tuhin Kanta Panday as the Finance Secretary at SEBI marks the return of bureaucrats to the helm of the market regulator. This comes on the heels of another Finance Ministry official, Sanjay Malhotra, being appointed to the RBI. Both Pandey and Malhotra previously headed the Revenue Department before their new assignments.
This shift back to bureaucratic leadership at SEBI signifies the end of the experiment of having a market professional lead the regulator. Madhabi Puri Buch, who came from a banking background, had initially brought hope for a more professional approach at SEBI. However, her tenure was clouded by the Hindenburg controversy, which raised questions about her role in the investigation into the Adani group.
Pandey, a career bureaucrat from the Odisha cadre, has a track record of significant decisions during his tenure at the Department of Investment and Public Asset Management (DIPAM). He played a key role in the privatization of Air India, listing of Life Insurance Corporation of India, and shifting the privatization strategy towards value addition of CPSUs.
Although Pandey’s time at DIPAM saw the removal of the word ‘Disinvestment’ from budget documents in favor of ‘Miscellaneous Capital Receipts’, he leaves behind the unfinished task of privatizing IDBI Bank. His recent work in the Revenue Department includes introducing a new Income Tax Bill and advocating for lower import duties on high-end motorcycles.
As Pandey takes on the role of SEBI Chief, he faces the challenge of navigating a slowing stock market and addressing volatility and malpractice in the derivative market. With a background in economics and business administration, Pandey brings a wealth of experience to his new position in Mumbai.
The article was originally published on February 28, 2025.
