Parliamentary Panel Calls SEBI Chairperson Madhabi Puri Buch for Review Amid Adani-Hindenburg Controversy

The Public Accounts Committee (PAC) of Parliament is set to scrutinise the operations of major regulatory bodies in India. Heads of the Securities and Exchange Board of India (SEBI) and the Telecom Regulatory Authority of India (TRAI) have been summoned for a hearing on 24 October. Senior officials from the Ministry of Finance, Department of Economic Affairs, and Ministry of Communications are also expected to attend.

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Sources indicate that SEBI Chairperson Madhabi Puri Buch and TRAI Chairperson Anil Kumar Lahoti are likely to appear before the panel. It is customary in parliamentary proceedings for heads of institutions to attend such briefings when called upon. This meeting occurs amid controversy involving allegations by US research firm Hindenburg against SEBI's chairperson and her husband.

Focus on Regulatory Bodies

The official agenda for the PAC meeting includes a performance review of regulatory bodies established by Acts of Parliament. The session will feature briefings by auditors followed by oral evidence from representatives of the Ministry of Finance, Department of Economic Affairs, and SEBI. The focus will be on evaluating the effectiveness and accountability of these regulatory authorities.

Similarly, representatives from the Ministry of Communications, Department of Telecommunications, and TRAI will provide oral evidence on their respective regulatory performances. This comprehensive review aims to ensure that these bodies operate efficiently and transparently in fulfilling their mandates.

Allegations Stir Controversy

In August, the Congress party organised nationwide protests over allegations made by Hindenburg against SEBI chief Madhabi Puri Buch and her spouse Dhaval Buch. The accusations suggested their involvement with offshore entities linked to alleged financial misconduct by the Adani Group. Both the Buchs and the Adani Group have denied these claims.

Hindenburg's report criticised SEBI for its perceived lack of action regarding allegations against Adani, 18 months after its initial findings. The Congress party has called for Madhabi Puri Buch's resignation as SEBI chief, although she has refuted any wrongdoing.

The upcoming PAC meeting is crucial in addressing these issues and ensuring that regulatory bodies maintain their integrity and accountability. By examining their performance, Parliament aims to uphold transparency and trust in these institutions.