PAC Summons SEBI and TRAI Chiefs for Review Amid Controversy

SEBI Chief Controversy: The Public Accounts Committee (PAC) of the Indian Parliament is set to review the operations of key regulatory authorities, the Securities and Exchange Board of India (SEBI) and the Telecom Regulatory Authority of India (TRAI). As part of this review, SEBI Chairperson Madhabi Puri Buch and TRAI Chairperson Anil Kumar Lahoti have been called to appear before the panel on October 24, 2024.

Agenda and Background

According to a report by PTI, the PAC has also summoned senior officials from the Finance Ministry to provide insights on the performance of these regulatory bodies. The agenda for the October 24 meeting includes:

• Performance Review of SEBI: Oral evidence from representatives of the Ministry of Finance and SEBI.
• Performance Review of TRAI: Oral evidence from representatives of the Ministry of Communications and TRAI.

It is customary in parliamentary practice for heads of institutions to attend briefings when summoned by such committees.

Current Controversy

The PAC's meeting comes at a time of heightened scrutiny surrounding SEBI Chairperson Madhabi Puri Buch. Allegations from the US research firm Hindenburg have sparked significant controversy, claiming links between Buch and the Adani Group. These allegations suggest that both Buch and her husband, Dhaval Buch, may have stakes in offshore entities associated with the Adani Group’s purported financial misconduct.

In response to these allegations, the Congress party staged nationwide protests in August, demanding the resignation of Madhabi Puri Buch. Rahul Gandhi, the Leader of Opposition, has called for accountability regarding the accusations, which both Buch and her husband have vehemently denied.

Hindenburg's Allegations

Hindenburg's report highlighted concerns over SEBI's perceived inaction on the allegations against the Adani Group, suggesting that 18 months had passed since its initial report without significant follow-up by SEBI. The Adani Group and SEBI have both rejected these claims, maintaining that there is no basis for the allegations.

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The upcoming PAC meeting is expected to shed light on the functioning and accountability of SEBI and TRAI amidst ongoing controversies. As the panel examines the performance of these regulatory authorities, it could have significant implications for the future of corporate governance and regulatory oversight in India.