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Correspondent

21 August 2024 at 10:20:16 am

Strategic Warmth

Donald Trump’s lavish praise of Narendra Modi on the sidelines of the G7 summit offered a familiar lesson that in international affairs, there is often a vast gulf between atmospherics and reality. Whether it translates into warmer U.S. policy towards India after a period of pretty intense frostiness is another matter. Trump, who only months ago was disparaging India with the sort of rhetorical abandon usually reserved for political opponents, suddenly rediscovered his affection for the...

Strategic Warmth

Donald Trump’s lavish praise of Narendra Modi on the sidelines of the G7 summit offered a familiar lesson that in international affairs, there is often a vast gulf between atmospherics and reality. Whether it translates into warmer U.S. policy towards India after a period of pretty intense frostiness is another matter. Trump, who only months ago was disparaging India with the sort of rhetorical abandon usually reserved for political opponents, suddenly rediscovered his affection for the world’s largest democracy. The American president described Modi as a “tough trader” while simultaneously calling him “an angel.” It was the sort of praise-soaked performance that recalled the heady days of ‘Howdy Modi’ and ‘Namaste Trump.’ Yet, seasoned observers of Trump know that his compliments are often as revealing as they are unreliable. Few world leaders have demonstrated such a remarkable capacity to oscillate between criticism and admiration as Trump. One moment India is a troublesome trading partner; the next it is an indispensable ally, never mind the U.S. willingness to indulge Pakistan’s anti-India machinations. The contradiction does not seem to trouble Trump. The question is whether Washington is genuinely attempting to repair ties with New Delhi after a period of growing strain. For all the noise generated by tariff disputes, immigration restrictions and occasional diplomatic irritants, the strategic logic underpinning the relationship has only strengthened. China’s growing assertiveness has convinced successive American administrations, regardless of party, that a stable balance of power in Asia is impossible without Indian participation. Trump may possess little patience for traditional alliances, but even he understands this arithmetic. His declaration that America would assist India if attacked was particularly notable, given that the U.S. rushed to shield Pakistan after Operation Sindoor. That said, the obstacles that have complicated the Indo-U.S. relationship have not disappeared. Trade remains a perennial source of friction. Trump continues to view international commerce through a mercantilist lens, measuring success largely through bilateral balances and tariff concessions. Indian professionals and students remain deeply affected by American visa policies. Modi himself raised concerns about the safety of Indian seafarers following recent American military actions in the Gulf of Oman that resulted in Indian casualties. Going by Trump’s record, personal rapport be mistaken for institutional trust. The history of Indo-American relations is littered with moments of enthusiasm followed by disappointment. What has sustained the partnership in recent years is not chemistry between leaders but a convergence of interests. That may ultimately be the most important takeaway from the latest Modi-Trump encounter. The meeting was less a revival of an old friendship than an acknowledgement of mutual necessity. Smiles and compliments make for good television. They may even indicate that both governments are seeking to lower the temperature after months of tension. But in the Trump era, warm words are among the cheapest commodities in international politics.

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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