The parliamentary panel investigating the Securities and Exchange Board of India (SEBI) adjourned its planned session to question SEBI Chairperson Madhabi Puri Buch after she informed the panel that she would skip the session due to "personal exigencies." The Public Accounts Committee (PAC) had been scheduled to meet in Delhi on Thursday at 11 a.m., but the meeting was called off.
The panel, which includes members from both ruling and opposition parties, was expected to scrutinize Buch and her team of senior officials regarding SEBI's handling of allegations raised by the US-based Hindenburg Research. Hindenburg's report had accused Indian conglomerate Adani Group of stock manipulation and accounting fraud, which raised questions about the effectiveness of India's regulatory oversight.
SEBI Chairperson Madhabi Puri Buch had sought an exemption from attending the PAC meeting, but the committee had denied the request, insisting on her presence. Despite SEBI's efforts to explain the necessity of the chairperson’s attendance, the panel emphasized Buch's direct involvement in the inquiry. The meeting was intended to grill Buch and a team of 3-4 senior SEBI officials on the performance of the regulatory body in light of the serious allegations.
Opposition MPs, particularly, were eager to press Buch on the steps taken by SEBI to investigate the allegations against the Adani Group and the regulatory body's overall handling of stock market irregularities. The committee is focused on evaluating SEBI's effectiveness as a watchdog in maintaining market integrity.
The PAC meeting's agenda was to review oral evidence from representatives of both the finance ministry and SEBI. This review was part of the committee’s broader plan to assess the performance of regulatory bodies established by Acts of Parliament. According to sources quoted by PTI, the focus of this performance review is not limited to the current controversy but aims to evaluate SEBI's overall role and functioning as a regulatory authority.
The adjournment of the meeting, due to Buch's absence, delays a key moment of scrutiny for SEBI as it faces growing pressure to address questions about regulatory lapses. Given the significance of the allegations, the PAC is expected to reschedule the meeting in order to proceed with its investigation.
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