House panel includes SEBI review in agenda,likely to summon Buch

Highlights:

• The Public Accounts Committee (PAC), Parliament’s chief watchdog on government expenditure, has included the performance review of the Securities and Exchange Board of India (SEBI) in its agenda for the year.
• This move comes as SEBI's chairperson, Madhabi Puri Buch, faces allegations from Hindenburg Research regarding her connection to the Adani Group scandal.

Key Developments:

PAC’s Decision:

• The PAC, chaired by K C Venugopal, took the unusual step of including a suo motu review of regulatory bodies established by Acts of Parliament.
• The performance of SEBI, along with its chairperson, will be examined. Sources suggest that Madhabi Puri Buch is likely to be summoned during this review process.

Hindenburg Allegations:

• Hindenburg Research, in its report, accused Buch and her husband, Dhaval Buch, of holding stakes in offshore entities linked to the alleged Adani Group money siphoning scandal.
• The Buchs responded by clarifying that their investment in the fund in question occurred in 2015 when they were private citizens living in Singapore, two years before Madhabi joined SEBI.

Political Repercussions:

• The Congress party has intensified its demand for a parliamentary probe into the allegations and has called for the removal of Madhabi Puri Buch from her position as SEBI Chairperson.
• The Adani Group has denied the allegations, calling them "malicious" and reaffirming its compliance with all legal and regulatory standards.

PAC Agenda:

• The committee is set to review the performance of regulatory bodies, including SEBI, as part of its broader oversight of public utilities and regulatory mechanisms.
• A significant focus will be on understanding the role and functioning of SEBI in light of recent controversies, alongside reviewing tariffs, fees, and other public infrastructure charges.

Prelims Takeaways:

• SEBI
• Hindenburg Research