SEBI Chief Madhabi Puri Buch Misses PAC Summons

Synopsis: SEBI chairperson Madhabi Puri Buch recently declined a summons from the Public Accounts Committee (PAC) due to personal reasons, stirring political controversy. BJP members questioned the PAC’s authority in summoning Buch, especially given the ongoing investigations and her absence from the meeting, while Congress leaders accused the ruling party of attempting to shield her from accountability. This article explores the ongoing debate and the accusations exchanged on both sides.

Madhabi Puri Buch, Chairperson SEBI. File | Photo Credit: Reuters

SEBI Chief's Absence Raises Questions

India's Securities and Exchange Board of India, the chief, Madhabi Puri Buch, boycotted a scheduled review meeting of the Public Accounts Committee claiming she had valid personal reasons for her boycott. Congress leader K.C. Venugopal, who is chairman of the committee, read out a letter from Buch explaining her absence, an act that promptly resulted in objections from members of the ruling BJP party from the procedural and legal angle, as SEBI chiefs cannot be summoned legally. In response, Venugopal adjourned the meeting.

Also read: Congress and Hindenburg Raise Red Flags Over SEBI Chairperson's Past Role

Review of SEBI by PAC in a Limbo

BJP members, spearheaded by former Union Minister Ravi Shankar Prasad, argue that it was out of the PAC's jurisdiction to summon the chief of SEBI when she was away. The committee reviews the reports of the Comptroller and Auditor General (CAG) and had gone beyond its locus standi, the members said. Venugopal argued that regulatory bodies were reviewed earlier by the PAC and rejected allegations of procedural lapses.

Parliament’s Public Accounts Committee (PAC) chairperson K.C. Venugopal interacts with the media after the committee’s meeting was postponed, in New Delhi, on October 24, 2024.

Notice at the Last Moment Packs Tension

Ms Buch reportedly notified just hours before the meeting that she could not attend. Although SEBI had confirmed attendance in advance, Buch later claimed exemption on account of a personal matter and because associated charges levelled against her by Hindenburg Research are still under consideration before the courts. In fact, even at the eleventh hour, the PAC chairman felt that Buch's absence, in view of the sensitive nature of the review ongoing, was disrespectful to the proceedings of the legislature.

Also read: SEBI Imposes Five-Year Trading Ban on Anil Ambani, Fines Him Rs 25 Crore

BJP and Congress Jockey Over "Political Motive" Allegation

Opposition leaders attacked BJP's stance on the issue terming it an exercise to avoid transparency. Rahul Gandhi of Congress questioned Buch's hesitation. Congress president Mallikarjun Kharge stated that the PAC has constitutional rights to probe the accountability of SEBI. On his part, Nishikant Dubey of the BJP urged Lok Sabha Speaker Om Birla through a letter stating that Venugopal's motives are suspect with political bias.

With inputs from agencies
Image Source: Multiple agencies