SEBI chief Madhabi Buch in deep trouble, Congress raises questions on government’s ‘hesitation’, now the allegations will be investigated

New Delhi: SEBI chief Madhabi is not having a good time. The allegations against her in the Hindenburg report will now be investigated. The Parliamentary Public Accounts Committee (PAC) is set to investigate the allegations against Madhubi Puri Buch and may summon her later this month. The issue was added to the PAC agenda after several members demanded an inquiry into the functioning of SEBI and the allegations against Buch in the panel’s first meeting on August 29. The PAC is headed by Congress leader KC Venugopal and has members from both the ruling NDA and the opposition India Block. The agenda item does not name the regulator or the chief. It is listed as a performance review of regulatory bodies established by an Act of Parliament. However, officials said it has come to light only due to the recent allegations against the SEBI chief. One of them said the issue was added suo motu to the August 29 meeting as several members were concerned about the serious allegations against the capital market regulator and the SEBI chief. Officials of the concerned ministry may be summoned this month.

These allegations against Butch
Buch has been accused of conflict of interest over SEBI’s probe into allegations levelled against the Adani Group by Hindenburg Research. The opposition Congress party has questioned payments made to Buch by ICICI Bank, his/her former employer. Zee founder Subhash Chandra has accused him/her of corrupt practices and employees have written to the finance ministry about misbehaviour at the regulator.

SEBI has denied the claims made by the employees and said that “external elements” were behind their protest. The market regulator said in a statement that the complaints of “public humiliation” at the workplace were “misplaced”. The Congress party had said that Buch held a position of profit at ICICI Bank and received income from SEBI despite drawing a salary.

What will happen at the next meeting?
Opposition parties have demanded an independent probe into the matter. They said it was in the national interest as foreign investors were getting worried and there were doubts about the integrity of India’s stock markets. The PAC will hold its next meeting on September 10 but it will be limited to the audit review of the Jal Jeevan Mission. Further meetings will be held later this month, the people quoted above said. Officials from the finance and corporate affairs ministries have been told they may be required to appear before the PAC this month.