Madhabi Puri Buch, 56, a former banker, was appointed as the chairperson of the Securities and Exchange Board of India (Sebi) on Monday for a period of three years.

This is the first time that a woman and a person from the private sector will head the market watchdog.

She served at ICICI Bank for 12 years in different positions and was the executive director during the 2006-2009 period.

Her appointment was cleared by the appointments committee of the cabinet headed by Prime Minister Narendra Modi.

Buch will replace Ajay Tyagi whose tenure as the Sebi chief ended on Monday. She is likely to begin her duties from Wednesday as Tuesday is a holiday on account of Mahashivratri.

Her appointment comes at a crucial time with Sebi’s role as an effective market regulator coming under scrutiny particularly during the co-location scam at NSE.

Recently, finance minister Nirmala Sitharaman said in an interview that the Centre is looking into whether Sebi took adequate action with regard to lapses at the bourse.

Earlier this month, Sebi penalised NSE and its former MDs and CEOs, Chitra Ramkrishna and Ravi Narain, and others for various violations in a case related to the appointment of Anand Subramanian as group operating officer and adviser to Ramkrishna.

Buch also dons the Sebi chairman’s robes at a time the stock markets are volatile because of the Russian invasion of Ukraine.

March will also see the mammoth initial public offering (IPO) of Life Insurance Corporation (LIC) which is crucial for the government meeting the disinvestment target for this fiscal.