• The government appointed Finance Secretary Tuhin Kanta Pandey as the 11th chairman of Securities and Exchange Board of India (SEBI).

• The Odisha-cadre Indian Administrative Service (IAS) officer would replace Madhabi Puri Buch, who completes her three-year tenure on February 28.

• The Appointments Committee of the Cabinet has approved the appointment of Pandey. 

• Pandey’s appointment is initially for a period of three years from the day he assumes charge.

Who is Tuhin Pandey?

• The 1987-batch IAS officer is the senior most officer in the Ministry of Finance handling the Department of Revenue.

• Pandey holds an MA in economics from the Punjab University, Chandigarh and an MBA from the University of Birmingham (UK). He has worked in various capacities in the government of Odisha and the government of India.

• In the early part of his career, Pandey served as the administrative head in the departments of health, general administration, commercial taxes, transport and finance. He also served as the executive director of the Odisha State Finance Corporation and managing director of the Odisha Small Industries Corporation.

• At the Centre, his previous positions include Joint Secretary, Planning Commission (now NITI Aayog), Joint Secretary, Cabinet Secretariat and Deputy Secretary in the Ministry of Commerce. 

• Pandey was the longest-serving secretary in the Department of Investment and Public Asset Management (DIPAM), a department in the Finance Ministry that manages government equity in public sector companies, as well as the Department of Public Enterprises (DPE).

• He assumed the charge of the revenue department on January 9, after his predecessor Sanjay Malhotra moved to the Reserve Bank of India (RBI) as its Governor.

• Pandey played a key role in the framing of the 2025-26 Budget. He was also involved in the drafting of the new Income Tax Bill, which seeks to replace the 64-year-old Income Tax Act, 1961.

• In his over-five-year stint (October 24, 2019 to January 8, 2025) at the DIPAM, Pandey took forward disinvestments of CPSEs as he implemented the public sector enterprises (PSE) policy, which intended to minimise the presence of the government in the PSEs across all sectors of the economy.

• Pandey was instrumental in the privatisation of Air India. On October 8, 2021, the government declared the Tata group as the winning bidder for Air India.

• Pandey also oversaw the privatisation plans of the IDBI Bank. The bidders are currently undergoing the due-diligence process.

What is SEBI?

• The Securities and Exchange Board of India (SEBI) was constituted as a non-statutory body on April 12, 1988 through a resolution of the government of India for dealing with all matters relating to the development and regulation of the securities market and investor protection and to advise the government on all these matters.

• SEBI was given statutory status and powers through an Ordinance promulgated on January 30, 1992. SEBI was established as a statutory body on February 21, 1992. The Ordinance was replaced by an Act of Parliament in April 1992.

• The Board has the same powers as are vested in a civil court under the Code of Civil Procedure, 1908, while trying a suit.

The main objectives of SEBI are:

i) To protect the interest of the investors.

ii) To regulate and promote development of securities markets in India. 

The main functions of SEBI include:

i) Registration, regulation and supervision of intermediaries operating in the securities market.

ii) Promoting and regulating self-regulatory organisations.

iii) Prohibiting fraudulent and unfair trade practices relating to securities markets.

iv) Calling from or furnishing to other authorities, whether in India or abroad, such information as may be necessary for the efficient discharge of its functions. The Board, for  the purpose of furnishing any information to any authority outside India, may enter into an arrangement or agreement or understanding with such authority with the prior approval of the central government.

Members of the Board

The Board consists of:

i) Chairperson

ii) Two members from the officials of the finance ministry.

iii) One member from the officials of the Reserve Bank of India.

iv) Five other members of whom at least three shall be whole-time members, to be appointed by the central government.

• The general superintendence, direction and management of the affairs of the Board shall vest in the Board of members, which may exercise all powers and do all acts and things which may be exercised or done by the Board.

Process for appointment of SEBI chief

• A Financial Sector Regulatory Appointment Search Committee (FSRASC) has been created by the government for recommending names of suitable persons for appointment to board level positions of financial sector regulatory bodies.

• The candidates are shortlisted by the FSRASC headed by Cabinet Secretary.

• The committee is also free to recommend any other person also who has not applied for the post on the basis of merit.

• The shortlisted candidates are interviewed by the panel comprising Economic Affairs Secretary and three external members having domain knowledge. Besides, the high level panel has authority to recommend names other than those who have applied for the advertised post.

• Based on interactions, FSRASC recommends names to the Appointments Committee of Cabinet headed by the Prime Minister.

• As per the SEBI Act, SEBI chairman is appointed for a maximum period of five years or till 65 years, whichever is earlier.

• Normally, the government initially appoints SEBI chief for three years. The tenures can be extended for another two years.

• However, among the recent SEBI chiefs, U.K. Sinha was an exception who was initially appointed for five years and thereafter got an extension for one more year. Sinha, led SEBI from February 18, 2011, to March 1, 2017 making him the second longest serving SEBI chief after D.R. Mehta (February 1995-February 2002).

Securities Appellate Tribunal

• Securities Appellate Tribunal is a statutory body established under the provisions of the Securities and Exchange Board of India Act, 1992 to hear and dispose of appeals against orders passed by SEBI or by an adjudicating officer under the Act.

• SAT hears and disposes of appeals against orders passed by the Pension Fund Regulatory and Development Authority (PFRDA) under the PFRDA Act, 2013.

• SAT also hears and disposes of appeals against orders passed by the Insurance Regulatory Development Authority of India (IRDAI) under the Insurance Act, 1938, the General Insurance Business (Nationalisation) Act, 1972 and the Insurance Regulatory and Development Authority Act, 1999 and the Rules and Regulations framed thereunder.

• The SAT consists of a presiding officer and two other members to be appointed by the central government.

• The presiding officer shall be a sitting or retired judge of the Supreme Court or High Court.

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