THE SUIT vs SARI CONFUSION

HE Securities and Exchange Board of India is one of the most important financial institutions in the country.

- PRAVEEN CHAKRAVARTY

Nearly 100 million Indians and thousands of foreign funds have invested their monies in India's financial markets based on their trust in the credibility of the market regulator.

Sebi Chairperson Madhabi Puri Buch is the first person from the private sector to be appointed its head. She is now embroiled in a controversy over her and her family's financial transactions. The Congress has brought out charges against Buch that they see as cases of financial impropriety. Buch, while not denying the transactions, has claimed innocence.

Both seem perplexed over why the other seems to be missing the obvious. This chasm is because of the figurative 'suit-versus-safari' (or sari) clash of expectations. Buch's transition from a corporate executive (suit) to a public servant (sari/safari) has been trapped in the meritocracy dogma.

American research firm Hindenburg kicked off this controversy by highlighting Buch and her husband's investments in offshore funds that were linked to the Adani group. Then the Congress came up with a slew of charges against Buch-including earning income through ICICI stock while being a regulator, her private firm earning income from corporates she was regulating, her husband earning crores through consulting assignments with corporates that were under Sebi's ambit, and her continuing investments in stocks and funds.