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Correspondent

23 August 2024 at 4:29:04 pm

Credibility Crisis

For years, Faizal Khan, known across the country by his affectionate moniker of ‘Khan Sir,’ has cultivated the image of an educator fighting a noble battle against an exploitative coaching industry. To millions of students, he is not merely a teacher but a folk hero, someone who is an outsider challenging entrenched interests while offering affordable education to the masses. But the recent episode surrounding the attack on Khan Global Studies in Patna raise uncomfortable questions and casts...

Credibility Crisis

For years, Faizal Khan, known across the country by his affectionate moniker of ‘Khan Sir,’ has cultivated the image of an educator fighting a noble battle against an exploitative coaching industry. To millions of students, he is not merely a teacher but a folk hero, someone who is an outsider challenging entrenched interests while offering affordable education to the masses. But the recent episode surrounding the attack on Khan Global Studies in Patna raise uncomfortable questions and casts a shadow on the educator’s reputation. According to reports, a group of men allegedly vandalised the coaching institute, pelted stones and assaulted a security guard. But the controversy did not end there. Soon after the incident, Khan claimed that seven to ten rounds of firing had taken place outside his institute. The allegation dramatically escalated the seriousness of the episode. His claim generated headlines, social media outrage and a wave of sympathy. Yet police investigations reportedly found no evidence of firing by the attackers. CCTV footage and local inquiries also failed to substantiate the claim. Then came a more troubling development. A video surfaced allegedly showing two security guards associated with Khan Global Studies had fired shots into the air. The guards have since been arrested. While the investigation is still underway, the sequence of events is, at the very least, fishy. If police are ultimately correct that there was no firing by the attackers, then how did such a dramatic narrative emerge? Why were claims of multiple rounds being fired presented with such certainty? Why did the alleged gunfire become the centrepiece of public messaging immediately after the attack? Khan’s rivals have claiming that it was the educator himself who orchestrated the attack to gain sympathy as his fortunes were flagging. While the truth of these allegations have yet to be proved, it is worth noting that the modern coaching industry is not merely an educational enterprise but also a business of branding whose teachers are celebrities. Coaching centres compete for market share, social media attention and student enrolments. Success stories turn into marketing campaigns. And victimhood can sometimes become a marketing campaign too. Indeed, the most striking feature of the episode is not the vandalism itself but the rush to construct a story of persecution before the facts were known. The suggestion that shadowy rivals sought to silence a successful educator fit neatly into an existing public image. It generated precisely the sort of public sympathy that influential personalities often enjoy. Students deserve better. They look to educators not merely for knowledge but for intellectual honesty. A teacher’s first duty is respect for facts. The Patna incident should therefore serve as a reminder that celebrity status cannot become a substitute for credibility. The damage will extend beyond one coaching institute or Khan’s reputation. It will damage trust itself. And for a teacher, there is no greater loss.

Lateral upgrade to ailing annihilation

Updated: Oct 21, 2024

Lateral upgrade to ailing annihilation

Being the first person from the private sector to be appointed as chairperson of Securities and Exchange Board of India (SEBI) as part of the government’s lateral initiative, Madhabi Puri Buch also holds the honour of being the first woman to hold the top post as capital market regulator.

But the laurels that the former private sector banker enjoyed in her earlier stint with ICICI Bank, was marred with allegations that she and her husband were having a stake in offshore entities, which were used to artificially inflate shares of Adani group companies.

Terming the allegation as `character assassination, Buch clarified that all disclosures have already been furnished and the fund in question did not invest in any securities involving the Adani group.

When it rains, it pours. This allegation was subsequently followed by Congress Party allegation that Buch had received salary and post-retirement benefits from ICICI Bank after she quit the private sector bank.

In its clarification to the stock exchanges, ICICI Bank asserted that the payments made to Buch were purely retirement benefits after her exit from the bank and they were neither salary nor employee stock options.

Prior to these allegations, Buch tenure at SEBI was all about bringing in quick reforms on operational issues by changing the format of consultation paper to bring in larger responses digitally. Being data savvy, the rationale of her decisions were democratic based on big data analysis derived from the responses received to the consultation papers.

Further she bifurcated the duties of the SEBI staff between operations and enforcement, which were done by the same persons earlier. Having worked for the private sector in the capital market domain space, Buch had a better understanding of the subject compared to officers from the administrative service in the past that reflected even in her orders as a whole-time director at SEBI before becoming the chairperson. As a whole time director at SEBI, her orders on adjudication issues were more directional to the capital market space, according to experts in the compliance space. She was also quick to revamp the old provisions of the 90s at SEBI.

Being tech and data savvy, Buch enhanced regulatory surveillance and detection of market manipulation, insider trading and fraud while also emphasizing on strengthening corporate governance by introducing stricter rules for independent directors and enhancing disclosures for related-party transactions.

To put in perspective, the annual report of the capital market regulator in the just concluded financial year revealed that the number of investigations related to insider trading jumped to 175 in 2023-24 from 85 in the preceding year while probes related to front running jumped over three times to 83 from 24 in the preceding year.

Transparency in mutual funds by implementing measures to protect retail investors along with tightening norms for initial public offers, particularly in the SME platforms were some of her other positive initiatives including confirmation of denial of any market rumours within 24 hours for the top 100 listed companies which will be extended to top 250 companies from December 1. However increased transparency and compliance with tightening regulations led to increased operational costs for the market participants and hence faced resistance from certain quarters. Born in 1966, Buch completed her primary education in Mumbai and graduated with specialization in Mathematics from Delhi and later obtained a management degree from Indian Institute of Management, Ahmedabad. In between, she got engaged to Dhawal Buch, a director at a consumer goods multinational at the age of eighteen and got married at the age of 21.

Besides ICICI Bank, Buch also worked as a lecturer at a college in England, worked at Greater Pacific Capital in Singapore and ICICI Securities as its CEO. She also worked as executive director on several private sector companies and as a consultant for New Development Bank (Brics Bank).

What now remains to be seen, is whether Buch, who survived the 26/11 terror attack when she along with her husband, was attending a meeting at Taj, be able to overcome the current ordeal. Keeping fingers crossed for the times to come.

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