PAC To Review Regulatory Bodies Amid Allegations Against Sebi Chairperson

The Parliament's Public Accounts Committee (PAC) has decided to review the performance of regulatory bodies established by Acts of Parliament, including the Securities and Exchange Board of India (Sebi), as per media reports. 

This review follows growing political tension regarding allegations of conflict of interest against Sebi Chairperson Madhabi Puri Buch.

PAC, chaired by Congress leader KC Venugopal, may summon Buch to assess Sebi’s performance, although she is unlikely to be called for the committee's next meeting on September 10. The review comes amid controversy surrounding Sebi’s investigation into the Hindenburg Research report targeting the Adani Group. Additionally, Congress has raised concerns over payments Buch reportedly received from ICICI Bank, where she had previously been employed, even after joining Sebi as a whole-time member.

Further complicating matters, Sebi employees have accused the leadership of fostering a “toxic” work culture, citing incidents of public humiliation and aggressive behaviour. Sebi has denied these claims, arguing that a group of employees has been attempting to shift the narrative towards workplace issues to strengthen their bargaining power and seek additional benefits.

In addition to reviewing Sebi, the PAC’s wide-ranging agenda includes a performance review of regulatory bodies, reforms in the banking and insurance sectors, and the implementation of centrally sponsored welfare schemes. The PAC, which oversees the auditing of government revenue and expenditure, will also audit fees and charges levied at public infrastructure like airports.