Parliamentary panel summons SEBI chief Madhabi Buch amid Adani-Hindenburg row

File picture of SEBI Chairperson Madhabi Puri Buch
| Photo Credit: PTI

The Public Accounts Committee (PAC) of Parliament has decided to review the functioning of top regulatory authorities in the country and has called heads of SEBI and TRAI for deposition on October 24.

Top officials of the Ministry of Finance, (Department of Economic Affairs) and Ministry of Communications have also been asked to appear before the key parliamentary panel, with sources saying representatives of the Securities and Exchange Board of India (SEBI) chairperson Madhabi Puri Buch and Telecom Regulatory Authority of India (TRAI) chairperson Anil Kumar Lahoti are likely to appear before the panel.

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Sources said the unstated convention in parliamentary practice is that chiefs of institutions have to attend parliamentary panel briefings whenever summoned.

The meeting of the key parliamentary panel comes amid a major row over allegations made by U.S. research body Hindenburg against SEBI chairperson Madhabi Puri Buch and her husband Dhaval Buch over her alleged links with the Adani Group.

“Briefing by Audit followed by Oral evidence of the representatives of Ministry of Finance (Department of Economic Affairs) and Securities and Exchange Board of India (SEBI) on the subject, ‘Performance Review of Regulatory Bodies established by Act of Parliament’,” the official agenda for the October 24 meeting of the PAC said.

“Oral evidence of the representatives of the Ministry of Communications, Department of Telecommunications and Telecom Regulatory Authority of India on the subject, ‘Performance Review of Regulatory Bodies established by Act of Parliament’,” it also said.

The Congress had earlier in August staged a nationwide protest over allegations by Hindenburg against SEBI chief Madhabi Puri Buch and her husband Dhaval Buch, who have denied any wrongdoing.

The Congress also sought her resignation as SEBI chief.

Hindenburg in one of its reports had alleged that the Buchs owned stakes in offshore entities linked to Adani Group’s alleged financial irregularities. Hindenburg also said that 18 months after its “damning” report on Adani “SEBI has exhibited lack of interest in charges against Adani”.

The Adani Group and the Buch duo have denied the allegations.