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Correspondent

23 August 2024 at 4:29:04 pm

Britannia Adrift

After years of Conservative infighting, Brexit-induced turmoil and the brief farce of Liz Truss’s premiership, Labour’s landslide victory under Keir Starmer appeared to herald a return to calm government in Britain. Now, less than two years later, Starmer has resigned, becoming the sixth British prime minister in a decade to leave office before completing a full term. The immediate trigger is the return of Andy Burnham to Westminster. His emphatic victory in the Makerfield by-election...

Britannia Adrift

After years of Conservative infighting, Brexit-induced turmoil and the brief farce of Liz Truss’s premiership, Labour’s landslide victory under Keir Starmer appeared to herald a return to calm government in Britain. Now, less than two years later, Starmer has resigned, becoming the sixth British prime minister in a decade to leave office before completing a full term. The immediate trigger is the return of Andy Burnham to Westminster. His emphatic victory in the Makerfield by-election electrified sections of the Labour Party, many of whom view the former Greater Manchester mayor as a more compelling and politically resilient figure than Starmer. Labour’s disappointing performance in local elections had only sharpened those doubts. But Britain faces a larger question. Why has the office of prime minister become so precarious? Starmer’s departure is further evidence that Britain has entered an age of political restlessness in which governments struggle to survive long enough to solve the problems they inherit. For much of the post-war era Britain was governed by two broad churches. While Labour and the Conservatives alternated in power, both accepted the legitimacy of the political system and possessed enough internal discipline to absorb dissent. Governments rose and fell at elections, not through a perpetual leadership crisis. That consensus has steadily frayed. The financial crisis of 2008 shattered faith in economic management. Brexit fractured both major parties and exposed profound divisions within British society. The years since have produced a succession of leaders who promised national renewal but found themselves overwhelmed by structural realities. David Cameron gambled on a referendum and lost. Theresa May tried to reconcile irreconcilable factions and failed. Boris Johnson mastered electoral politics but struggled with government. Liz Truss discovered that markets could be more ruthless than party rivals. Rishi Sunak inherited a depleted administration. Now Starmer joins the procession. The striking feature is that Britain’s instability has survived changes of both party and ideology. The Conservatives were punished for appearing incompetent. Labour is now being punished for appearing ineffective. Part of the problem lies in a political culture increasingly addicted to instant gratification. Governments are expected to deliver quick solutions to problems decades in the making. Starmer won office promising pragmatism and competence. Yet once in government, Labour often appeared less interested in confronting difficult truths than in managing headlines. Faced with pressure from different constituencies, it oscillated between technocratic caution and populist gestures. The result satisfied nobody. Voters seeking change found incrementalism. Voters seeking stability encountered drift. Meanwhile, Britain’s political landscape has fragmented. The Greens have chipped away at Labour’s progressive flank. Nigel Farage’s Reform UK has transformed itself into a potent force among disillusioned voters. The old two-party duopoly looks increasingly fragile. Electoral volatility has become the norm rather than the exception. The real challenge now is not who governs Britain. It is whether anyone can govern it effectively anymore.

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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