Dilip Cherian | Das leaves behind robust legacy: Will it be smooth sailing under Malhotra?

Mr Das, a veteran babu with an uncanny ability to sidestep contentious queries, has kept everyone guessing about his plans. Even as whispers of a behind-the-scenes campaign for an extension swirl — fuelled by rumours of his visit to a Chennai hospital — added to the prolonged intrigue.

Mr Das’ tenure has been pivotal, marked by stability and a steady hand during turbulent times. Appointed after the unexpected exit of Urjit Patel in 2018, Mr Das steered the RBI through the pandemic-induced economic upheaval. His administration delivered bold monetary measures, including the latest CRR cut, which is expected to infuse ₹1.16 lakh crores into the banking system.

Yet, the government’s choice of Mr Das — and now Mr Malhotra — signals a clear preference for seasoned administrators over candidates selected solely on performance metrics. While Mr Das’ leadership underscored continuity and control, it also spotlighted a shift away from independent-minded central banking.

As Mr Malhotra steps into this high-stakes role, the financial community will keenly watch how he balances the RBI’s autonomy with the government's expectations. The baton has been passed, but the challenges of inflation, growth, and global financial headwinds remain as pressing as ever.

CBI moves towards multidisciplinary investigations

The Central Bureau of Investigation (CBI) is getting a makeover — or at least, that’s the idea behind the new rules the government has notified. The aim? To bring in more diversity at the superintendent of police (SP) level by opening up the doors to professionals from outside the Indian Police Service (IPS).

Until now, only 15 of the 75 SP-level deputation posts could be filled by officers from non-police backgrounds. That number has now been bumped up to 18. It may not seem like a seismic shift, but in bureaucracy-speak, even small tweaks signal intent.

The new rules allow half the SP posts in CBI to be filled through deputation and the rest through promotions. And it’s not just the IPS officers in the mix anymore. The expanded pool includes members of All India Services, Central Police Organisations, organized Group ‘A’ services of the Central government, and even state and Union Territory police organisations.

This shift isn’t just about filling seats but equipping the CBI to handle complex financial crimes and multidisciplinary investigations better. Financial shenanigans today often demand expertise beyond traditional policing—think forensic auditing, financial analysis, and cybercrime tracking. Having onboard officers with such skill sets is a step in the right direction.

That said, the four-year cap on deputation tenure remains intact. While it ensures a constant inflow of fresh talent, it also means the clock is ticking for these specialists to make an impact.

This move reflects a slow acknowledgement that crime-solving in the 21st century needs more than just a badge and a baton. It needs minds that think differently — and now, the CBI seems ready to embrace that change.

Sebi’s dilemma: External hires and internal frustrations

Sebi is no stranger to turbulence, but the latest row might signal deeper cracks within its ranks. The appointment of Shikha Gupta, a former taxation head at Hindustan Unilever Ltd (HUL), as executive director (ED) has reportedly ruffled feathers among Sebi’s employees. Their contention? A deep-seated belief that such positions should go to internal candidates, not external hires parachuting in.

This discontent comes amid a swirling controversy surrounding Sebi chairperson Madhabi Puri Buch, already under scrutiny following allegations tied to the Hindenburg report. Adding fuel to the fire is Ms Gupta’s rumored connection to Buch — her husband’s longstanding association with HUL raises questions about impartiality. While the optics aren’t ideal, is the uproar entirely justified?

Critics argue that external appointments, though unsettling, can bring fresh perspectives. Shikha Gupta’s corporate experience could potentially inject Sebi with innovative approaches, especially in navigating taxation complexities. Yet, this optimism is overshadowed by Sebi’s internal dynamics. Its employees appear to view this as another instance of sidelining its own talent — a sentiment exacerbated by memories of Pramod Rao’s appointment from ICICI Bank in 2022, which triggered similar dissent.

The larger issue here is the perceived erosion of Sebi’s autonomy. When top roles are filled with outsiders, particularly those linked to private sector powerhouses, it’s easy for whispers of cronyism to gain traction. For Sebi to maintain its credibility, it must address this trust deficit. Transparent hiring practices and robust communication with its internal teams would go a long way in quelling such revolts.

Ultimately, the question Sebi faces isn’t just about Ms Gupta’s appointment — it’s about whether the regulator is doing enough to balance internal aspirations with the need for external expertise. Getting that balance right is critical for its future.