Parliament panel may summon Sebi chief, hold review of regulatory bodies: Sources

The Public Accounts Committee (PAC) headed by senior Congress leader KC Venugopal is likely to summon Sebi chairperson Madhabi Puri Buch during a performance review of regulatory bodies, sources.

The development comes at a time when the Congress has accused the Sebi chairperson of “holding an office of profit at ICICI” – a charge firmly denied by the bank. The performance review of “regulatory bodies established by Act of Parliament”, including the Securities and Exchange Board of India (SEBI), has been added as a suo motu subject for review.

The Public Accounts Committee is responsible for keeping a watch on the government’s accounts and the functioning of public undertakings. The next PAC meeting is on September 10, but she is unlikely to be called on that day. On September 10, the CAG report of the Jal Shakti Ministry is likely to be discussed.

WHY HAS SEBI BEEN UNDER ATTACK FROM THE OPPOSITION?
The Sebi has been under sustained attack from the Congress and the opposition following a report by US-based short seller Hindenburg Research on “stock price manipulation” by the Adani Group.

Last month, Hindenburg alleged that Sebi’s unwillingness to act against the Adani Group might be because Madhabi Buch had stakes in offshore funds linked to the conglomerate. However, Buch called the allegations “baseless”.

The Congress ramped up its attack on Buch last month, alleging that she received an income of Rs 16.80 crore between 2017 and 2024 from ICICI Bank after she became a full-time member of the market regulator in 2017.

While Buch has not yet reacted to the charge, ICICI Bank has denied paying any salary or granting any ESOPs (Employee Stock Ownership Plans) to the Sebi chairperson after her retirement from the bank, other than her retiral benefits.

Madhabi Buch has also come under criticism from a section of employees of the markets’ regulator, who held a protest in Mumbai this week against her leadership style. The disgruntled employees also alleged a toxic work environment at Sebi.