The Public Accounts Committee (PAC) of Parliament has summoned Madhabi Puri Buch, Chairperson of the Securities and Exchange Board of India (SEBI), to address allegations made by US-based research firm Hindenburg.
The PAC, which reviews the performance of India’s regulatory bodies, will hold a meeting on 24 October, where officials from SEBI and the Telecom Regulatory Authority of India (TRAI) will testify.
Representatives from the Ministry of Finance’s Department of Economic Affairs and the Ministry of Communications are also set to attend the session. While SEBI Chair Buch and TRAI Chair Anil Kumar Lahoti are expected to send senior officials, it is customary for heads of institutions to attend such high-profile briefings in person.
Allegations against SEBI Chief Buch and the Adani Group
The meeting gains significance following allegations by Hindenburg Research against Buch and her husband, Dhaval Buch. The research firm claimed the couple had stakes in offshore entities tied to financial irregularities involving the Adani Group.
Hindenburg also criticised SEBI for its inaction, stating the regulator had failed to investigate Adani-related charges after 18 months of its initial report. Both the Buchs and the Adani Group have denied any wrongdoing.
In August, the Congress party staged nationwide protests, demanding Buch's resignation over her alleged connections to the Adani Group. Despite the protests, she has remained in her role as SEBI chief, with the upcoming PAC meeting likely to intensify scrutiny of the situation.
PAC’s Agenda for 24 October
The official agenda for the PAC meeting is titled “Performance Review of Regulatory Bodies Established by Act of Parliament,” and aims to gather oral evidence from SEBI and TRAI.
The review of SEBI’s performance is expected to dominate the discussions, given the public interest in the Adani-Hindenburg controversy.
As India’s financial markets regulator, SEBI has faced growing pressure to clarify its position on the allegations.
Broader Regulatory Implications
The PAC’s investigation could have wider implications for regulatory oversight in India. SEBI has faced criticism for not acting swiftly enough in its investigation of the Adani Group’s financial activities, which has raised concerns about its effectiveness as a market watchdog.
The meeting will also provide an opportunity to review TRAI’s role in the telecom sector, which has been dealing with regulatory challenges and competition issues in the rapidly changing digital landscape.
Market Impact
Financial markets are expected to closely monitor the PAC proceedings, as significant developments could affect investor confidence, particularly in Adani Group stocks.
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