Madhabi Puri to investigate allegations against Buch and regulatory bodies
BUSINESS: The parliamentary public accounts committee (PAC) is set to probe allegations against Securities and Exchange Board of India (SEBI) chairperson Madhabi Puri Buch, for which she is likely to be summoned later this month, reports Economic Times. The development comes after a meeting on August 29, in which several members of the committee sought a formal probe into the matter. The PAC, headed by Congress leader KC Venugopal and comprising members from both the ruling NDA and the opposition Bharat Bloc, has put the issue on its agenda. The agenda item does not explicitly name SEBI or its chief, but lists it as “performance review of regulatory bodies established by an Act of Parliament”.
However, officials familiar with the situation indicated that the probe is specifically linked to the recent allegations surrounding Buch. These concerns were raised at the August 29 meeting, when committee members expressed discomfort about the “serious allegations against the capital market regulator and SEBI chief”, leading to the matter being automatically included in the PAC’s agenda. Sources also suggested that ministry officials connected with the case could be called for questioning later this month. Madhabi Puri Buch has been accused of conflict of interest, particularly in relation to SEBI’s ongoing investigation into allegations made by Hindenburg Research against the Adani Group.
In addition, a group of SEBI employees submitted a written complaint to the finance ministry, accusing Buch of fostering a “toxic work culture” at the regulatory body. Buch has strongly denied any wrongdoing, and SEBI has also rejected the claims made by the employees. SEBI said that complaints of “public humiliation” at the workplace were “false” and suggested that “external elements” may be involved in the allegations. As the investigation progresses, the PAC review could shed further light on the controversy, especially amid growing political and public interest in the functioning of regulatory bodies such as SEBI. The investigation 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.
