October 24, 2024
New Delhi, India
SEBI
On Thursday, the chairperson of the Securities and Exchange Board of India (SEBI), Madhabi Puri Buch, was scheduled to appear before the Public Accounts Committee (PAC) of Parliament, headed by Congress leader KC Venugopal, for the second time to review the regulatory body. However, Buch skipped the meeting, citing “pressing reasons” for her absence.
Details of the Request
KC Venugopal informed reporters that during the first committee meeting, the PAC had decided to conduct a review of regulatory bodies, leading to the scheduled meeting to assess SEBI’s performance. Buch had initially confirmed her attendance but later communicated at 9:30 AM that she could not travel to Delhi due to personal exigencies. Venugopal stated, “We sent a notice to the concerned people. They sought an exemption from the meeting, which we refused. After that, she confirmed that she and her team would be present. But later, we received information that she was unable to attend.”
In light of her request, the PAC decided to postpone the meeting to a later date, allowing for her participation.
Purpose of the Review
The PAC is responsible for monitoring the government’s accounts and the functioning of public undertakings. The committee has added the performance review of regulatory bodies established by acts of Parliament, including SEBI, as a suo motu subject for review. The review is particularly pertinent given the recent criticisms directed at SEBI.
Allegations Against SEBI Chief
Buch’s performance review comes on the heels of accusations from Hindenburg Research, a U.S.-based short-seller, who alleged a conflict of interest regarding Buch’s involvement in investigations into the Adani Group. The Adani Group has faced allegations of stock manipulation and other financial misdeeds. Additionally, Congress has raised concerns over payments Buch received from ICICI Bank, her former employer, after joining SEBI as a whole-time member and subsequently assuming the chairperson role. Both Buch and her husband, Dhaval Buch, have denied all allegations, asserting that all necessary disclosures were made prior to her appointment.
Internal Complaints at SEBI
Amidst these allegations, reports have surfaced indicating that SEBI employees have lodged complaints with the finance ministry regarding a toxic work culture within the organization. Employees have accused the leadership of fostering an environment characterized by shouting, scolding, and public humiliation during meetings, raising concerns about management practices within the regulatory body.
Significance of the PAC
The PAC plays a crucial role in ensuring executive accountability and is tasked with reviewing funds sanctioned by Parliament, scrutinizing the government’s annual financial accounts, and examining other relevant matters. Ministries and government bodies are obligated to act on PAC recommendations, which are subsequently presented as ‘action taken reports’ to Parliament.
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