The Public Accounts Committee (PAC) of Parliament is set to investigate allegations against Securities and Exchange Board of India (Sebi) chairperson Madhabi Puri Buch, following mounting concerns over the regulator's functioning.
As per a media report, the issue was added to the PAC's agenda after several committee members raised the need for a review during a meeting on 29 August. The committee, chaired by Congress leader KC Venugopal, includes members from both the ruling NDA and opposition INDIA blocs.
Though the agenda item does not explicitly name Sebi or its chief, the report mentioned that certain officials confirmed the decision was driven by recent accusations against Buch, including allegations of a conflict of interest related to Sebi’s handling of the Hindenburg Research investigation into the Adani Group. Opposition leaders have questioned Buch's past connections with ICICI Bank, her former employer, and claimed that she continued to receive payments from the bank while serving as the market regulator’s head. Both Sebi and ICICI Bank have denied any wrongdoing.
The controversy intensified after Zee founder Subhash Chandra accused Buch of corrupt practices, adding to the scrutiny around her leadership. Additionally, a group of Sebi employees submitted a formal complaint to the finance ministry, criticising a "toxic work culture" within the organization. Sebi, however, has dismissed these claims, attributing the unrest to external influences and asserting that complaints of "public humiliation" in the workplace were unfounded.
Opposition parties, particularly the Congress, have called for an independent inquiry, arguing that the integrity of India's financial markets could be compromised if these concerns are not addressed. They stressed that the issue holds national significance, with foreign investors potentially losing confidence in the country’s capital markets.
While the PAC's next meeting on 10 September will focus on reviewing the Jal Jeevan Mission audit, further sessions are expected to address the Sebi allegations later this month. Officials from the finance and corporate affairs ministries may be summoned as part of the inquiry, with details still being finalised, the media report mentioned.
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