Denied exemption, Sebi chief Madhabi Buch set to appear before PAC tomorrow

NEW DELHI: After much suspense, Sebi chairperson Madhabi Buch is scheduled to appear before the Public Accounts Committee of Parliament on Thursday, a meeting that on agenda is slated to be a performance review of the top regulator, but which may result in fireworks over its functioning as well as about the recent allegations of impropriety levelled against Buch.

Well-placed sources said Buch had sought an exemption from the PAC, but was denied. They said she should be present before the committee.

The agenda of the committee's meeting is "briefing by audit followed by oral evidence of the representatives of ministry of finance and Sebi on the subject 'performance review of regulatory bodies established by Act of Parliament'."

When the summons were issued to Buch for appearance this month, BJP protested the decision of the PAC headed by Congress MP and AICC general secretary KC Venugopal, and attributed political motives to his move. BJP members had also written a letter to the Lok Sabha Speaker protesting the summons. However, the issue appears to have settled in favour of the PAC summons.

Sources said BJP has issued a whip to its members to attend the meeting, and protests against opposition members on their line of questioning may be in the offing. Though the said agenda is limited to the Sebi's functioning, political leaders believe that the Sebi chief headed team may be subjected to questions about the regulator's functioning, which gained prominence over the issue of industrialist Adani in the wake of the allegations levelled by US short-seller Hindenburg .

Also, specific questions could be asked to Buch about allegations of financial misconduct and of conflict of interest. While the charges against Buch were first levelled by Hindenburg, they were followed up by various whistleblowers, and by the opposition led by Congress, triggering a political storm. Buch and her husband have rebutted the allegations.