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By:

Abhijit Mulye

21 August 2024 at 11:29:11 am

NDA power matrix reshaped after success

AI generated image Mumbai: A quiet coup in the state has triggered a loud shift in the power dynamics of the nation’s capital. By engineering the defection of six additional MPs, Deputy Chief Minister Eknath Shinde has nearly doubled his parliamentary muscle, transforming his Shiv Sena faction from a junior regional partner into an indispensable pillar of the NDA. Now sitting on a commanding 13 seats, Shinde has dramatically increased his political leverage—leaving a cautious BJP to weigh the...

NDA power matrix reshaped after success

AI generated image Mumbai: A quiet coup in the state has triggered a loud shift in the power dynamics of the nation’s capital. By engineering the defection of six additional MPs, Deputy Chief Minister Eknath Shinde has nearly doubled his parliamentary muscle, transforming his Shiv Sena faction from a junior regional partner into an indispensable pillar of the NDA. Now sitting on a commanding 13 seats, Shinde has dramatically increased his political leverage—leaving a cautious BJP to weigh the cost of an emboldened ally demanding a bigger slice of the pie in both the Union and state cabinets. In a masterstroke of political engineering that has profoundly jolted political landscape, Shinde has once again demonstrated his formidable capacity for disruption. The rebellion of six out of nine Lok Sabha Members of Parliament from the Uddhav Thackeray-led Shiv Sena (UBT), ostensibly joining Shinde’s ranks under the banner of “Operation Tiger,” is not merely a regional skirmish. It is a calculated power play that reverberates through the highest corridors of power in New Delhi. By nearly doubling his party’s strength in the lower house from seven to thirteen MPs, Shinde has dramatically altered his own political trajectory, elevating his faction from a helpful regional ally to an indispensable pillar of the National Democratic Alliance (NDA). Shinde’s Stature The immediate consequence of this crossover is a massive surge in Shinde’s stature within the NDA hierarchy. With thirteen parliamentarians, his Shiv Sena is now poised to become the fourth-largest bloc in the ruling national coalition, sitting just behind the Bharatiya Janata Party, the Telugu Desam Party, and the newly formed Nationalist Citizens Party of India. This numerical leap is of immense strategic value to the BJP-led central government. In a parliamentary environment where the ruling coalition possesses only a modest majority, every single seat counts. The central leadership is acutely aware of upcoming legislative hurdles, particularly ambitious constitutional amendments like the proposed delimitation bill, which will require a formidable two-thirds majority. By acting as the architect of this crucial numerical boost, Shinde has cemented his reputation as a reliable and highly effective operator for the NDA, significantly increasing his bargaining power and political leverage. National Relief For the BJP, this development evokes a complex mixture of profound national relief and acute regional anxiety. From the vantage point of PM Narendra Modi and Union Home Minister Amit Shah, Shinde’s successful poaching operation is a clear windfall. It simultaneously fortifies the NDA’s numerical strength in New Delhi while severely crippling a vocal opposition force in Maharashtra. The central BJP leadership views Shinde as a vital asset capable of bridging the gap between their current numbers and the overwhelming mandates of the past. However, the perspective from the Maharashtra BJP headquarters is noticeably more apprehensive. State BJP leaders openly acknowledge Shinde’s soaring political equity, but they are increasingly wary of his expanding ambitions. They recognize that an emboldened Shinde, eager to fill the political vacuum left by Uddhav Thackeray and a fragmented Nationalist Congress Party, will aggressively attempt to expand his footprint across the state, potentially encroaching upon the BJP’s own traditional support bases. Power Sharing This dramatically enhanced political heft immediately raises pressing questions regarding power-sharing arrangements, both at the Centre and in the state. Armed with thirteen MPs, Shinde’s camp is undoubtedly preparing to seek greater political rewards. In the Union Cabinet, his demand for an additional, high-profile ministerial berth is now backed by solid arithmetic. Given his heightened utility to the national coalition, the BJP high command is highly likely to accommodate this request during the next cabinet reshuffle. However, the power struggle within the Maharashtra state cabinet promises to be far more contentious. Shinde, who had to settle for the Deputy Chief Ministership behind Devendra Fadnavis following the last assembly elections, may now feel emboldened to petition the BJP leadership for the top job. The BJP’s state unit is actively preparing to fiercely resist any such demand. Senior BJP leaders are quick to emphasize that despite his parliamentary gains, Shinde’s legislative strength in the state assembly hovers around 57 MLAs, dwarfed by the BJP’s commanding 132 legislators. Consequently, conceding the Chief Minister’s chair remains highly improbable. Instead, the BJP will be forced into a delicate balancing act, likely appeasing Shinde by granting his faction a larger share of influential, heavyweight portfolios within the state government to keep the alliance stable. Ultimately, through sheer political audacity, Eknath Shinde has ensured that neither New Delhi nor Mumbai can afford to govern without catering to his increasingly formidable political weight.

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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