The Securities and Exchange Board of India (SEBI) Chairperson, Madhabi Puri Buch, was expected to appear before a parliamentary panel on Thursday but skipped the session due to “personal exigencies.” The Public Accounts Committee (PAC) had summoned Buch and 3-4 senior SEBI officials to discuss allegations raised by Hindenburg Research. The meeting was adjourned as Buch’s absence led to a pause in the inquiry, stirring political tensions.
SEBI Chief’s Absence Leads to Meeting Postponement
The parliamentary panel’s meeting in New Delhi, scheduled for 11 a.m. on Thursday, was called off when SEBI Chairperson Madhabi Puri Buch informed the committee that she would not attend due to personal reasons. Despite a request for her exemption, the panel insisted on her presence, which heightened scrutiny over her non-appearance. The adjournment was confirmed by The Indian Express.
The PAC was tasked with reviewing the performance of SEBI in light of serious allegations from US-based Hindenburg Research. These claims pointed towards potential regulatory failures, sparking concern among both opposition and ruling party members, who were eager to probe SEBI’s handling of the accusations.
Panel Denies Exemption to Buch
The parliamentary committee, composed of members from both the ruling and opposition parties, was prepared to question Buch and her senior team extensively. However, despite SEBI’s inquiry on whether her attendance was necessary, the panel was adamant about Buch’s presence. This decision suggests the gravity of the issues at hand, particularly as SEBI faces growing pressure to address the fallout from the Hindenburg allegations.
Buch’s absence raised questions, especially from opposition members, who are determined to investigate the role of SEBI under her leadership and whether the regulatory body adequately addressed the concerns surrounding the allegations.
Purpose of the PAC Meeting
The adjourned meeting was primarily set to review the performance of SEBI and other regulatory bodies, as outlined by the parliamentary panel’s agenda. Sources cited by PTI revealed that the committee aimed to collect “oral evidence of representatives of the finance ministry and SEBI” in their performance review of regulatory bodies established by Parliament.
The PAC is committed to a thorough evaluation of these regulatory bodies, as part of its larger goal to assess their effectiveness in overseeing critical financial and telecom sectors.
“Oral evidence of the representatives of the Ministry of Communications, Department of Telecommunications, and Telecom Regulatory Authority of India on the subject, ‘Performance Review of Regulatory Bodies established by Act of Parliament’,” sources added. The session was expected to include a wide range of discussions on regulatory performance across different sectors.
Allegations Against SEBI Chief Buch
Over the past several months, Madhabi Puri Buch has been at the center of controversy, facing several accusations related to her alleged investments in offshore funds tied to the Adani Group. These allegations first emerged from Hindenburg Research and were later amplified by the opposition Congress party. Accusations of violations in the code of conduct have added to the scrutiny surrounding Buch’s leadership.
In September 2024, SEBI Chairperson Madhabi Puri Buch and her husband, Dhaval Buch, issued a joint statement refuting the accusations against them. The statement called the claims “false, incorrect, malicious and motivated,” standing firm against the charges levied by both Hindenburg Research and opposition parties.
The allegations have created a cloud of controversy around SEBI, with questions about its regulatory oversight and integrity. The PAC’s scrutiny is crucial in shedding light on the performance of SEBI under Buch’s tenure and the steps taken to address the growing concerns about offshore investments and market regulations.
The adjournment of the PAC meeting due to SEBI Chief Madhabi Puri Buch’s absence has raised significant political and regulatory questions. With mounting pressure from opposition parties and ongoing public scrutiny, SEBI’s handling of recent allegations will remain under the spotlight. The inquiry is expected to continue once Buch is available, with the PAC determined to hold a thorough review of SEBI’s performance. The regulatory body’s actions in the coming weeks will be crucial in restoring public confidence and addressing the serious claims it faces.
