Mumbai, India

India’s embattled market regulator, the Securities and Exchange Board of India (SEBI) has landed in a major controversy over another high-profile appointment, the Zee News network has learned. SEBI insiders and employees are reportedly irked at the possibility of an ‘outsider’ being appointed as the regulator’s Executive Director (ED).

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According to sources, Shikha Gupta, former head of taxation at Hindustan Unilever Ltd (HUL), is likely to be tapped for the critical role.

"There seems to be a lot of dissatisfaction among SEBI officers and employees regarding this appointment," the source said. The employees want one of the internal aspirants to be appointed as the next ED at the SEBI, who is well-versed with the operations of the regulator and whose integrity is not under question.

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SEBI officials are also critical of the trend that external candidates are being given preference over internal aspirants, which is discouraging high-performing aspirants and hurting their morale.

The controversy over high-profile appointments at the SEBI is not new. In 2022, a similar situation arose when ICICI Bank's Pramod Rao was named ED of the regulator. His alleged ties with the SEBI chairman, Madhabi Puri Buch, also came under scrutiny back then. It is to be noted that Buch began her professional journey with ICICI Group, working for 17 years in various leadership positions.

The Dhaval Buch connection

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There are allegations that Madhabi’s husband Dhaval Buch may have indirectly influenced the decision to appoint Gupta as the SEBI’s ED, Zee Business reported.

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Dhaval has served in key roles at Hindustan Unilever Ltd for several years, where Gupta comes from.

It’s a fresh challenge for the credibility of the Indian market regulator as charges involving conflict of interest have been levelled against chairman Madhabi Buch on more than one occasion.