Parliamentary panel PAC summons SEBI chief Madhabi Puri Buch on Oct 24 amid Adani-Hindenburg row

The PAC of Parliament is scheduled to examine the operations of India’s leading regulatory agencies, calling on officials from the Securities and Exchange Board of India (SEBI) and the Telecom Regulatory Authority of India (TRAI) to provide depositions on October 24.

Thus, on Friday, the Public Accounts Committee (PAC) summoned SEBI chief Madhabi Puri Buch and officials from the Department of Economic Affairs to appear before them on October 24, according to ET. 

Additionally, the PAC called upon senior officials from the Department of Revenue to discuss goods and services tax (GST) collections and recent notices issued to corporations, including IT giant Infosys.

The assembly will also encompass representatives from the Ministry of Finance’s Department of Economic Affairs and the Ministry of Communications. Despite an informal convention that heads of institutions should attend such meetings personally, PAC members have suggested that senior officials will represent SEBI Chairperson Madhabi Puri Buch and TRAI Chairperson Anil Kumar Lahoti.

This review comes at a pivotal time, as SEBI chief Buch is embroiled in controversy following serious accusations from the US-based research firm Hindenburg. The firm alleged connections between Buch and her husband, Dhaval Buch, and the Adani Group, highlighting supposed stakes in offshore entities tied to the group's alleged financial misconduct.

Hindenburg has also criticized SEBI for its perceived inaction regarding investigations into Adani-related allegations, stating, "18 months after its damning report on Adani, SEBI has exhibited a lack of interest in charges against Adani."

The scrutiny intensified in August when the Congress party organized nationwide protests demanding Buch’s resignation from her position at SEBI. Both the Adani Group and the Buchs have consistently denied the claims made against them.

The committee's official agenda will focus on the "Performance Review of Regulatory Bodies established by Act of Parliament," with oral testimonies scheduled from both SEBI and TRAI. This session aims to assess the effectiveness of these institutions in carrying out their mandates. As the PAC prepares to meet, the outcome could have significant implications for the future of regulatory oversight in India.

The PAC, chaired by Congress leader KC Venugopal, includes members from both the ruling NDA and the opposition INDIA bloc.