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The Securities and Exchange Board of India (SEBI) is currently facing a storm of controversy as its Chairperson, Madhabi Puri Buch, finds herself at the center of multiple corruption allegations. These allegations have been raised by various parties, including the activist short-seller Hindenburg Research and the Congress party, prompting the parliamentary Public Accounts Committee (PAC) to investigate the matter.
Hindenburg Research, known for its critical reports on companies, accused Buch of neglecting previous allegations against the Adani Group due to a perceived conflict of interest. The firm alleged that Buch and her husband, Dhaval Buch, hold stakes in offshore funds allegedly used by the Adani Group to funnel money. The Economic Times reported that the PAC will examine these allegations, potentially summoning Buch for a hearing.
The PAC's formal agenda, however, avoided mentioning Buch, SEBI, or Hindenburg's allegations directly. Instead, it focused on a broader 'Performance review of regulatory bodies established by act of parliament.' Despite this, officials confirmed that the matter indeed pertains to Hindenburg's accusations against Buch.
Adding to the pressure on Buch, the Congress party alleged that she continued to hold an office of profit at ICICI Bank even after becoming SEBI Chairperson, drawing income from the bank. Furthermore, Zee Group patriarch Subhash Chandra accused Buch of corruption and bias against him, alleging that she received illegal money from ICICI Bank and was involved in the Rs 1,875-crore loan fraud case involving the bank and Videocon.
Chandra also blamed Buch for the failure of the Zee-Sony merger, stating that her actions prevented Sony from merging with Zee. The PAC's decision to investigate the allegations against Buch signifies the gravity of the situation. The investigation will likely examine the validity of these allegations and potentially lead to further scrutiny of SEBI's operations and Buch's conduct.
Source: Charges against Sebi chief to be examined by parliamentary panel: Report