Parliamentary Panel May Summon SEBI Chief Madhabi Puri Buch Amid Allegations of Corruption

The Public Accounts Committee (PAC) of the Indian parliament is likely to summon Madhabi Puri Buch, the chairperson of the Securities and Exchange Board of India (SEBI). According to media reports quoting sources, the PAC is likely to summon the SEBI chief as early as this month. The panel’s next meeting is scheduled for 10th September.

The Public Accounts Committee, or PAC, is a key parliamentary body responsible for auditing the government’s finances. Headed by Congress leader K. C. Venugopal, the committee has announced that it will review the 'performance of regulatory bodies.' As part of this review, they are likely to summon SEBI Chief Madhabi Puri Buch and other officials.

According to reports, this review of SEBI’s performance was added to the agenda of the parliamentary watchdog for government spending after several members of the panel demanded a probe into the allegations against the SEBI Chief. The development comes at a time when the SEBI Chief is in the eye of multiple storms.

Hindenburg Research vs SEBI Chief

The first set of allegations against the SEBI Chief came on 10th August 2024 from Hindenburg Research, which accused her of having stakes in offshore funds linked to the Adani Group. The US-based short seller stated, "The current SEBI Chairperson and her husband, Dhaval Buch, had hidden stakes in the exact same obscure offshore Bermuda and Mauritius funds, found in the same complex nested structure, used by Vinod Adani." – end of quote.

However, the Buchs slammed Hindenburg Research's claims as 'baseless' and 'malicious.' They clarified that their investments in offshore funds were made well before Madhabi joined SEBI. They also emphasised that all necessary disclosures were made, and Madhabi recused herself from any SEBI decisions involving potential conflicts of interest – a clarification backed by SEBI.

“ICICI Bank Salary” Claims by Congress

The next set of allegations to hit the SEBI chief came from the Congress. On 2nd September 2024, Congress alleged that SEBI Chairperson Madhabi Puri Buch drew regular income from banking giant ICICI Bank and its insurance arm, ICICI Prudential, from 2017 to 2024.

ICICI Bank refuted the allegations. In a regulatory filing, the lender said, "ICICI Bank or its group companies have not paid any salary or granted any ESOPs to Madhabi Puri Buch after her retirement, other than her retiral benefits. It may be noted that she had opted for superannuation with effect from 31st October 2013."

Toxic Culture at SEBI?

Hot on the heels of the Congress claims, another crisis erupted for the SEBI chief, and this time within her organisation. In an unprecedented move, SEBI officials wrote to the Finance Ministry, raising concerns about a toxic work environment under the leadership of Buch. The letter, dated 6th August, which has been reviewed by several media organisations, reportedly accused the SEBI leadership of using harsh language, setting unrealistic goals, and micromanaging their work. Responding to the reports regarding the complaint, SEBI said that the issues with the employees have been resolved.

Subhash Chandra Adds Fuel to the Fire

Meanwhile, media tycoon Subhash Chandra added fuel to the fire by accusing Madhabi Puri Buch of corrupt practices and demanding that her income be probed by investigative agencies. However, a SEBI official rejected Chandra’s allegations outright, calling them “opportunistic comments and completely baseless.”

Support from Harsh Goenka

It’s disheartening to see Madhabi Puri Buch, head of SEBI, being cornered despite her strong moral values and integrity. Diplomacy may not be her strength, and it seems she’s made some enemies because of it. However, I’m confident she’ll rise above it all and come out stronger.

— Harsh Goenka (@hvgoenka) September 5, 2024

While the SEBI Chief is facing several accusations, some people have also expressed their support for her. One of the prominent personalities to do so is Harsh Goenka, the Chairman of the RPG Enterprises.

In a post on the social media platform X, Harsh Goenka wrote, “It’s disheartening to see Madhabi Puri Buch, head of SEBI, being cornered despite her strong moral values and integrity.

Diplomacy may not be her strength, and it seems she’s made some enemies because of it. However, I’m confident she’ll rise above it all and come out stronger.”