Madhabi Buch's absence leads to postponement of parliamentary review meeting on Sebi
New Delhi (The Uttam Hindu): Sebi chief Madhabi Puri Buch missed a meeting organized by the Public Accounts Committee (PAC) on Thursday, citing "pressing reasons." This marks the second time she has been summoned by the PAC to discuss the functioning of the regulatory body. The BJP expressed frustration with PAC chair KC Venugopal, accusing him of making unilateral decisions and raising "non-existent" issues to tarnish the government's reputation.
The PAC had called Buch to review Sebi's operations amid allegations of conflict of interest from US-based short-seller Hindenburg, claims she has strongly denied. Additionally, there were accusations regarding her holding an office of profit at ICICI Bank, which the bank has firmly rejected. The Congress party has demanded her removal.
Venugopal explained that the committee had decided in their first meeting to review regulatory bodies, including Sebi. Despite initially confirming her attendance, Buch informed them at 9:30 AM that she could not travel to Delhi due to a personal emergency. In consideration of her being a woman, the committee chose to postpone the meeting.
BJP MPs present accused Venugopal of acting unprofessionally and politically motivated. BJP MP Ravi Shankar Prasad claimed Venugopal made decisions without consulting other members, and he stated that several PAC members, including those from the BJP and its allies, would approach Lok Sabha Speaker Om Birla regarding Venugopal’s conduct.
BJP MP Nishikant Dubey wrote to the Speaker, criticizing Venugopal for raising "non-existent" issues that could destabilize the financial structure and economy of the country, which he attributed to political motivations due to the Congress party's loss in the 2024 Lok Sabha elections.
The PAC's role is to monitor government accounts and the operations of public undertakings. The review of regulatory bodies, including Sebi, was added as a subject for scrutiny by the committee. Although the review plan has been approved, the BJP, which has a majority on the panel, is likely to oppose the opposition's efforts.
Sebi has faced ongoing criticism from the Congress and other opposition parties following Hindenburg Research's report alleging "stock price manipulation" by the Adani Group. Hindenburg has claimed that Sebi's inaction could be linked to Buch's stakes in offshore funds associated with the conglomerate, an allegation she has dismissed as "baseless."
The Congress intensified its criticism last month, alleging that Buch received ₹16.80 crore from ICICI Bank between 2017 and 2024 after she joined Sebi. While Buch has not publicly responded to these claims, ICICI Bank has denied that she received any salary or employee stock ownership plans after her retirement, aside from her retirement benefits.
