Congress Intensifies Scrutiny of SEBI Chief Amid Concerns Over Stock Market Risks to Retail Investors

The Congress party has intensified its criticism of SEBI chief Madhabi Puri Buch, questioning her absence from a parliamentary panel. This follows Congress leader Rahul Gandhi's Instagram video highlighting risks to retail investors in the stock market. The party raised concerns about Buch's last-minute emergency excuse for missing a Public Accounts Committee (PAC) meeting.

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Congress media department chairman Pawan Khera posed questions about Buch's reluctance to appear before the PAC. He questioned if there was a plan to shield her from accountability and whether this was part of a conspiracy benefiting Adani at the expense of small investors. Khera's statement reflects the party's ongoing scrutiny of SEBI under the current government.

SEBI's Credibility Under Scrutiny

The Congress released a video titled "Buch Bachao Syndicate," where Khera alleged that SEBI's credibility had diminished under the BJP-led National Democratic Alliance. The party has consistently expressed concerns over SEBI's independence and authority being compromised. Through press conferences, Congress has highlighted conflicts of interest involving Buch and her family.

Khera stated that these revelations have shaken the trust of India's 11.5 crore registered investors who rely on SEBI for a transparent financial environment. He criticised the government's role in leaving investors vulnerable by compromising the institution meant to protect their savings and aspirations.

Concerns Over Regulatory Practices

Khera expressed concern over SEBI leadership's failure to adhere to transparency standards they publicly advocate for. He described this as unethical conduct, potentially legally questionable, posing a threat to India's regulatory stability. This situation not only erodes trust among Indian investors but also raises concerns for foreign investors, affecting India's growth prospects.

The PAC had summoned SEBI officials, including Buch, who cited an emergency just an hour before her scheduled appearance. Khera claimed BJP MPs protested these summonses, suggesting government efforts to protect Buch and larger players in this nexus.

Gandhi's video featured him discussing with Khera ways to warn retail investors about market risks. Gandhi expressed willingness to support the party's communication efforts to safeguard small investors' money. He questioned who was protecting those committing fraud in his video caption.

The Congress continues its campaign against perceived erosion of SEBI's independence and powers under the current administration. They argue that such actions compromise investor confidence and regulatory integrity, impacting both domestic and international investment landscapes.