Public Accounts Committee to summon Sebi chief Buch

NEW DELHI: Public Accounts Committee (PAC) of Parliament is set to investigate allegations against Securities and Exchange Board of India (Sebi) chief Madhabi Puri Buch and may summon her later this month.

The PAC has included a “performance review of regulatory bodies established by Acts of Parliament” as one of its key areas of focus for 2024-25.

As part of this review, the committee will probe the accusations against the Sebi chief, with plans to summon Buch and officials from the finance and corporate affairs ministries for questioning. Sources suggest Buch could be summoned as early as this month.

Suo motu probe

Chaired by Congress leader K C Venugopal, the PAC added the “performance review of regulatory bodies” to its list of over 160 subjects following demands from several committee members during its first meeting. This decision was taken suo motu, as stated in the Lok Sabha bulletin on September 2, after the last committee meeting.

The PAC has the authority to summon officials, which it will exercise in upcoming sessions.

The committee’s next meeting is scheduled for September 10, with the main agenda being the “performance audit” of the Jal Jeevan Mission. However, the PAC is expected to hold additional meetings later in the month.

Hindenburg Research

The decision to investigate the functioning of regulatory bodies comes amid accusations of a conflict of interest against Buch concerning Sebi’s probe into allegations made by Hindenburg Research against the Adani Group.

The Congress party and other opposition parties in the INDIA bloc have called for a joint parliamentary committee (JPC) investigation into the matter, along with Buch’s resignation or removal as Sebi chief. They have also raised concerns over payments allegedly made to Buch by her former employer, ICICI Bank, accusing her of holding an office of profit while serving at Sebi.

Zee founder Subhash Chandra has further accused Buch of corrupt practices. In addition, Sebi employees have submitted a written complaint to the finance ministry, raising concerns about a “toxic work culture” within the regulatory body.

Denied allegations

Both Buch and her husband have denied the allegations, with ICICI Bank also refuting the claims made by the Congress. Sebi has dismissed the complaints from its employees, attributing them to “external elements.”

The PAC consists of 22 members: 15 from the Lok Sabha and 7 from the Rajya Sabha. Notable members include BJP’s Ravi Shankar Prasad, Nishikant Dubey, Anurag Thakur, Jagdambika Pal, Tejasvi Surya, and Sudhanshu Trivedi; DMK’s T R Baalu and T Shiva; Congress leaders Shaktisinh Gohil, Amar Singh, and Jai Parkash; Aparajita Sarangi; Ashok Chavan; and Trinamool Congress leaders Saugata Roy and Sukhendu Shekhar Ray.

The PAC plays a significant role in auditing government revenues and expenditures. It reviews audit reports from the Comptroller and Auditor General (CAG) and selects specific issues for detailed examination, while also initiating suo motu investigations throughout the year.