Sebi Chair Madhabi Puri Buch's meeting with Parliament committee postponed

Madhabi Puri Buch and three to four senior Sebi officials are likely to be questioned by Parliament's Public Accounts Committee

Madhabi Puri Buch, the chairperson of the Securities and Exchange Board of India (Sebi), was expected to appear before Parliament's Public Accounts Committee (PAC) on Thursday. However, PAC head K C Venugopal stated that the meeting had been postponed as Buch was unable to attend due to "pressing reasons."

 

The meeting is anticipated to be highly charged, following allegations by a senior Bharatiya Janata Party (BJP) member, accusing Congress MP K C Venugopal of politically motivated actions.

 

Representatives from the Ministry of Finance and Sebi will provide oral evidence as part of the PAC's broader objective to assess the effectiveness of such institutions. Buch and three to four senior Sebi officials are likely to be questioned by the committee.

 

A new date for the meeting is yet to be announced.

 

What is PAC?

The PAC is a permanent parliamentary committee, acting as a financial watchdog. The committee ensures that the government's expenditures align with parliamentary approvals. It comprises up to 22 members, including 15 from the Lok Sabha and up to seven from the Rajya Sabha. The chairperson is appointed by the Lok Sabha speaker, and each member serves a one-year term. The current chairperson of the PAC is Congress leader K C Venugopal.

 

Congress' controversial move against Sebi

Although the decision to scrutinise regulatory bodies has not attracted significant controversy, Venugopal’s move to summon Buch has sparked tensions, especially among members of the ruling party. Buch has been at the centre of a political storm, following accusations of conflict of interest levied by US-based short-seller Hindenburg Research. The Congress has seized upon these allegations, calling for Buch's resignation and using the issue to criticise the government.

 

BJP MP Nishikant Dubey, a member of the PAC, escalated the dispute by writing to Lok Sabha speaker Om Birla. In his letter, Dubey accused Venugopal of using the committee to advance a political agenda aimed at discrediting the central government and undermining India’s financial stability. Dubey further claimed that unverified allegations by Hindenburg Research against Buch were part of a broader effort to destabilise the country's economy. He referred to the incident as part of an "India Chapter" of an international conspiracy.

 

Venugopal has not responded to Dubey's accusations.

 

What else is on the PAC agenda?

The session will also include testimony from the Ministry of Communications and the Telecom Regulatory Authority of India (TRAI), as part of the PAC’s ongoing review of regulatory agencies' performance.