Tuhin Kanta Pandey, a veteran IAS officer from the 1987 batch, is set to take the helm as the 11th chairman of the Securities and Exchange Board of India (SEBI) on March 1. He will succeed Madhabi Puri Buch, whose tenure as the SEBI chief is drawing to a close. Pandey's appointment comes on the heels of his tenure as the Finance Secretary and Secretary of the Department of Revenue, where he played a pivotal role in shaping the country's economic policy and financial administration.
During his tenure as Finance Secretary, Pandey was instrumental in the formation of the Union Budget. This included the bold initiative of exempting individuals earning up to Rs 12 lakh a year from income tax, a move aimed at stimulating demand and driving economic growth. His tenure also saw him play a significant role in drafting the new Income Tax Bill, which was based on global best practices. The bill aimed to simplify the language and structure of the Income-tax Act, 1961, effectively reducing the Act's volume by nearly 50 per cent.
Pandey assumed the role of Finance Secretary in September 2024, following the promotion of TV Somanathan to Cabinet Secretary. Prior to this, he held key positions in the government, including Secretary of the Department of Investment and Public Asset Management (DIPAM) and Secretary of the Department of Public Enterprises (DPE).
In these roles, Pandey was instrumental in formulating India's fiscal policies, disinvestment programmes, and public sector management. As one of the longest-serving secretaries in DIPAM, Pandey was responsible for managing the government's stake in public sector enterprises. His tenure saw him play a crucial role in implementing the government's privatisation of public sector companies.
He oversaw the sale of loss-making Air India to the Tata Group, marking one of the government's most significant disinvestment initiatives aimed at reducing the drain on the national exchequer and paving the way for the revival of the commercial airline. Pandey also handled the successful public listing of the government-owned life insurance giant LIC, which was the country's biggest ever IPO. In addition, he initiated the privatisation process of IDBI Bank, which is still ongoing as bidders conduct their due diligence.
Pandey's academic credentials include a Master of Arts degree in Economics from Punjab University and an MBA from the University of Birmingham, UK. His early career saw him serve as Deputy Secretary in the Ministry of Commerce and Joint Secretary at the Planning Commission before his leadership role at DIPAM. His tenure also included a stint as Secretary in the Ministry of Civil Aviation in 2021.
The new Income Tax Bill, which Pandey played a significant role in drafting, has been a topic of much discussion. The bill, which was tabled in the Lok Sabha by Finance Minister Nirmala Sitharaman, is expected to undergo three crucial stages post-Cabinet approval before it is rolled out. The bill introduces explicit provisions for the taxation of virtual digital assets, including cryptocurrency and other digital financial instruments. It also defines virtual digital asset and electronic mode to ensure that digital transactions are adequately covered under tax laws, reflecting the increasing significance of digital finance.
The Central Board of Direct Taxes (CBDT) opened a platform for public consultation in October 2024 to ensure an inclusive approach to the new tax framework. More than 6,500 suggestions were submitted by taxpayers, industry experts, and financial analysts. The new tax framework is also expected to align with global best practices by incorporating international tax principles and ensuring consistency in enforcement.
