The matter was added to the PAC’s agenda after several members demanded an inquiry into the functioning of Sebi and allegations against Buch at the panel’s first meeting on August 29. The PAC is headed by Congress leader KC Venugopal and has members from both the ruling NDA and the opposition INDIA bloc.
The agenda item doesn’t specify the regulator or name the chief. It’s listed as “Performance review of regulatory bodies established by act of parliament.” However, officials said it stemmed from the recent allegations against the Sebi chief. “The matter was added on suo moto basis in the August 29 meeting as many members were concerned about the serious allegations against the capital market regulator and the Sebi chief,” said one of the persons. “The concerned ministry officials may be summoned this month.”
Buch has been accused of conflict of interest over Sebi’s investigation into the Hindenburg Research allegations against the Adani Group. The opposition Congress party has questioned payments made to Buch made by ICICI Bank, her former employer. Zee founder Subhash Chandra has accused her of corrupt practices. And, employees made a written complaint to the finance ministry about a “toxic work culture” at the regulator.
The regulator’s chairperson has denied wrongdoing, as has ICICI Bank. Sebi has refuted claims made by the employees and said “external elements” were behind their protests. The market regulator said in a statement that complaints of “public humiliation” at the workplace were “misplaced.” The Congress party had said Buch held an office of profit at ICICI Bank and received income despite drawing a salary from Sebi.
Opposition parties have demanded an independent inquiry into the matter, saying that it’s in the national interest as foreign investors were getting concerned and there were doubts about the integrity of India’s stock markets.The PAC will hold its next meeting on September 10 but this will be limited to the audit review of the Jal Jeevan Mission. Further meetings will be scheduled later this month, said the people cited above. Officials of the finance and corporate affairs ministry have been told that they may need to appear before the PAC this month, said the people cited.
