In a recent development, Madhabi Puri Buch, chairperson of the Securities and Exchange Board of India (SEBI), missed a meeting convened by the Public Accounts Committee (PAC) on Thursday, citing “pressing reasons.” This meeting, chaired by Congress leader KC Venugopal, marked the second invitation for Buch to discuss the performance of the regulatory body.
During the initial PAC meeting, Venugopal indicated that the committee had unanimously agreed to review various regulatory bodies, including SEBI. Following standard protocol, a notice was issued to the relevant parties, including Buch, to attend the review session. However, when Buch and her team sought an exemption from attending the meeting, the request was denied. Despite the initial setbacks, Buch later confirmed her availability for the session. Nonetheless, at approximately 9:30 AM on the day of the meeting, the committee received a notification from Buch and other SEBI members stating that she was unable to travel to Delhi due to unforeseen circumstances. As a result, the PAC decided to postpone the meeting to a later date, considering Buch’s request.
The PAC plays a crucial role in monitoring the Central Government’s financial activities and overseeing the operations of public enterprises. Recently, the committee added a performance review of regulatory bodies established by an Act of Parliament, including Securities and Exchange Board of India, to its agenda as a suo motu subject for examination.
Buch’s absence from the meeting comes in the wake of significant scrutiny regarding SEBI’s performance and her leadership. The regulatory authority recently faced allegations from the US-based short-seller Hindenburg Research, which claimed that Buch had a conflict of interest in SEBI’s investigation into the Adani Group. This group had previously been accused by Hindenburg of stock manipulation and various financial misconducts. In addition to these claims, Congress has raised questions regarding Buch’s financial dealings with ICICI Bank, her former employer. Allegations suggested that Buch received payments from the bank after being appointed as a whole-time member of Securities and Exchange Board of India, prior to her current position as chairperson. Both Madhabi Buch and her husband, Dhaval Buch, have vehemently denied all accusations, asserting that they disclosed all relevant information to the regulatory authority before her appointment.
Further complicating the situation, a group of SEBI employees has reportedly expressed concerns to the finance ministry about a toxic work environment within the organization. These employees allege that the leadership’s behavior includes shouting, public reprimands, and humiliation during meetings, contributing to a toxic workplace culture. The combination of these allegations and Buch’s absence from the PAC meeting highlights growing discontent and scrutiny regarding SEBI’s internal dynamics and regulatory effectiveness.
As the Public Accounts Committee prepares to reschedule the meeting, it remains to be seen how the ongoing issues will affect the future of Securities and Exchange Board of India and its leadership under Buch. The performance review is expected to address not only the recent controversies but also the broader implications for investor confidence in India’s regulatory framework.
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