Indian financial system is being governed by two top professionals: Reserve Bank of India Governor Mr. Shakti Kanta Das and Securities and Exchange Board of India Chairperson Mrs. Madhabi Puri Buch. These are two pillars of financial stability in India. Both are Stephanions (Alumni of St. Stephen’s College, Delhi). Mr. Das, a former IAS officer of Tamil Nadu Cadre, was at the top of his bureaucratic career at the time of taking the helm of RBI. Mrs. Buch was the top brass of ICICI before moving to SEBI. Which Stephanion is better as a regulator? Mr. Das or Mrs. Buch?
Bundle of Calm Energy: Mr. RBI Governor is better known as Captain Cool. He is never in haste. He emanates calm energy. He keeps his plan under wrap and makes it public when it’s mature enough to do so. He is a reformist. He has introduced several measures like UPI lite, UPI Circle, UPI International, Unified Lending Interface, Central Bank Digital Currency (CBDC), Shadow Transfer mechanism, transparency on interest rate and other charges, MuleHunter AI etc. All these moves are customer centric. At one hand, he makes an effort to regulate complex banking system and on the other he keeps on developing new products for the benefit of customers in general. No surprise that he has been rated A+ by US based Global Finance Magazine due to his apt handling of inflation, growth trajectory, currency stability and interest rate regime. He has been given Governor of the Year award twice in a row. Mr. RBI Governor has successfully handled the withdrawal of Rs 2000 notes. He was chosen as Sherpa of G-20.
Aggressive and impatient: Mrs. RBI Chairperson is impatient for reforms. She is aggressive. She knows the regulations, the technology and can foresee the outcome. Her actions reflect ‘too much, too soon’. That’s why her colleagues accuse her of ‘changing goal posts.’ She has worked in private sector. She has led a marketing team. She has developed business. It’s difficult for her to work with fetters of working hours and redundant regulations. She is Bindas. IIM Ahmedabad gifts wings of excellence to its students. SEBI Chairperson is gifted with wings of knowledge and determination. Mrs. Buch is a reformist too. So much so that her colleagues get exhausted sometimes. She introduced corporate system of KRA (Key Responsibility Area) for appraisal at SEBI. From introduction of T+0 settlement cycle to Basic Services Demat Account (BSDA), taking action on front runners to media celebrities for market manipulation, rescuing the depositors of Sahara to facing Joint Parliamentary Committee on NSE co-location scam, she has been a winner. During Hindenburg expose on Adani, she came out with flying colors convincing the apex court with her investigations.
Heart vs Mind: Mr. RBI Governor thinks from heart. His winds of change are like morning breeze. Mrs. SEBI Chairperson is brainy. Her mind dominates over heart. Quick decisions, immediate executions seem to be her buzzword. A government organization is not used to all this. Therefore, she has to face backlash of colleagues sometimes. Mr. Das has been non-controversial during his entire tenure. Mrs. Buch, although mired with Hindenburg controversy, is standing tall. Both the regulators enjoy full trust of the Government.
Confidentiality vs swiftness: Mr. RBI Governor is a man of confidentiality. Nobody can say for sure, when would he cut interest rate. Whether he would cut interest rate or not is also debatable. He has his own trajectory and tangent. As former Secretary, Economic Affairs he is aware of growth dynamics and as central bankers he knows the interest rate curve. He knows the are of balancing the both. Mrs. SEBI Chairperson is swift in action and vocal in her intent. She is regulating world’s top derivative exchange where retail investors are competing with Domestic Institutional Investors (DII) and Foreign Institutional Investors (FIIs). She ensures a level playing field for all category of investors and he ensures currency stability and forex market fair play.
The indispensable Duo: Critics may vote in favor of Mr. RBI Governor Shakti Kanta Das as a better regulator, but Mrs. SEBI Chairperson can’t be ignored either. Difference lie in expression of energy. Mr. Das is cool, Mrs. Buch is aggressive. Mr. Das is accommodative, Mrs. Buch is dominating. Mr. Das is a reformist by nature, Mrs. Buch is a crusader. Both are indispensable for Indian financial system.
