SEBI Chief’s Exemption Request Sparks Controversy
A crucial meeting of the Public Accounts Committee (PAC), set to review the performance of the Securities and Exchange Board of India (SEBI), was postponed on October 24. SEBI Chairperson Madhabi Puri Buch requested an exemption from attending due to personal reasons, which led to the delay. The meeting was intended to examine SEBI’s role in regulating India’s financial markets but took a political turn as tensions rose between committee members.
PAC Chairman Postpones Meeting
PAC chairman and Congress leader K C Venugopal decided to adjourn the meeting after receiving Buch’s request at 9:30 a.m. He cited Buch’s personal reasons and said, “Considering a woman’s request, we thought it was better to postpone today’s meeting.” The committee had planned to hear representatives from both the finance ministry and SEBI to assess the performance of regulatory bodies established by Parliament.
BJP Criticizes the Postponement
The postponement, however, drew sharp criticism from BJP members. BJP MP Ravi Shankar Prasad accused Venugopal of making unilateral decisions, calling the process “unparliamentary and politically motivated.” Prasad expressed dissatisfaction with the chair’s handling of the situation, alleging that the members were not allowed to speak before the decision to postpone was made.
Political Tensions Over SEBI Chairperson’s Role
The situation is further complicated by the political controversy surrounding Madhabi Puri Buch. Buch has been embroiled in a political row following allegations by US-based short-seller Hindenburg Research, which accused her of conflicts of interest. The Congress party seized on these allegations to demand her resignation, adding a political dimension to the PAC’s decision to call her for review.
Opposition and BJP Clash Over PAC’s Mandate
Venugopal defended the PAC’s move to review SEBI, stating that the committee had decided to examine the performance of regulatory bodies in its first meeting. However, BJP MPs, including Nishikant Dubey, have opposed this focus, arguing that the PAC’s primary role is to scrutinize the government’s financial accounts, not to delve into non-existent issues. Dubey accused Venugopal of attempting to destabilize the country’s financial system and wrote to Lok Sabha Speaker Om Birla to voice his concerns.
A political storm is brewing after the Public Accounts Committee (PAC) postponed its meeting. Media reports indicate that BJP MP Ravi Shankar Prasad, along with other party members, accused PAC Chairman K C Venugopal of acting unilaterally in his decision-making. Prasad revealed that several PAC members, including BJP leaders, have raised formal complaints with the Lok Sabha Speaker regarding Venugopal’s actions. While there was no objection to the committee’s plan to review the performance of regulatory bodies, Venugopal’s move to summon SEBI Chairperson Madhabi Puri Buch raised concerns among ruling party members. Buch has been at the center of a political controversy following accusations made by U.S. firm Hindenburg Research and further amplified by the opposition Congress party.
Political Divide Grows as SEBI’s Review is Delayed
With the majority of PAC members belonging to the BJP and its allies, the postponement is likely to deepen political divisions within the committee. The review of SEBI’s performance remains a point of contention, and further debates are expected when the meeting is rescheduled.
(With inputs from agencies)
