PAC To Review Sebi, Trai Amid Sebi Chief Controversy

The Public Accounts Committee (PAC) of Parliament is scheduled to review the functioning of India’s top regulatory bodies, summoning officials from the Securities and Exchange Board of India (Sebi) and the Telecom Regulatory Authority of India (Trai) for depositions on 24 October. The meeting will also involve representatives from the Ministry of Finance’s Department of Economic Affairs and the Ministry of Communications.

While Sebi Chairperson Madhabi Puri Buch and Trai Chairperson Anil Kumar Lahoti are expected to be represented by senior officials, an informal parliamentary tradition suggests that institutional heads typically attend such briefings in person.

The review gains significance amid ongoing controversies involving Sebi chief Buch. US-based research firm Hindenburg Research has levelled serious allegations against her and her husband, Dhaval Buch, over their supposed links with the Adani Group. The Buchs have denied these claims, yet the accusations have heightened scrutiny. In a report, Hindenburg claimed the couple held stakes in offshore entities allegedly tied to Adani Group’s financial activities and criticised Sebi’s perceived lack of action in investigating these matters.

In August, the Congress party held nationwide protests calling for Buch’s resignation in light of these allegations. While the Adani Group and the Buchs have both denied the claims, the PAC’s upcoming review will further examine the role of regulatory bodies like Sebi.

The official agenda for the PAC meeting includes a “performance review of regulatory bodies established by act of parliament,” where evidence will be collected from Sebi and Trai, focusing on the effectiveness of their operations.