PAC To Probe Allegations Against SEBI Chief Madhabi Puri Buch, Regulatory Bodies: Report

The parliamentary Public Accounts Committee (PAC) is set to investigate allegations against Madhabi Puri Buch, the chairperson of the Securities and Exchange Board of India (SEBI), with a possible summons later this month, according to a report by Economic Times citing informed sources.

This development follows a meeting on August 29 where several committee members called for a formal inquiry into the matter. The PAC, led by Congress leader KC Venugopal and comprising members from both the ruling NDA and the opposition's INDIA bloc, has placed this issue on its agenda.

The agenda item itself does not explicitly name SEBI or its chief, but is listed as a "Performance review of regulatory bodies established by act of parliament."

However, officials familiar with the situation indicated that the investigation is specifically tied to the recent allegations surrounding Buch.

These concerns were raised in the August 29 meeting after committee members expressed unease about the "serious allegations against the capital market regulator and the SEBI chief," leading to the matter being added suo moto to the PAC's agenda.

Sources also suggested that ministry officials linked to the matter could be summoned for questioning later this month.

Madhabi Puri Buch has faced accusations of conflict of interest, particularly regarding SEBI's ongoing investigation into the allegations made by Hindenburg Research against the Adani Group.

Additionally, a group of SEBI employees submitted a written complaint to the Ministry of Finance, accusing Buch of fostering a "toxic work culture" at the regulatory body.

Buch has strongly denied any wrongdoing, and SEBI has similarly dismissed the claims made by the employees. SEBI stated that the complaints of "public humiliation" at the workplace were "misplaced" and suggested that "external elements" might be involved in the allegations.

As scrutiny mounts, the PAC's review could shed further light on the controversy, particularly amid growing political and public interest in the functioning of regulatory bodies like SEBI.

The inquiry is being closely watched given SEBI's key role in regulating India's financial markets, and the high-profile nature of the allegations involving the Adani Group.