PAC to Review Performance of Regulatory Bodies Amidst SEBI Controversy
The Public Accounts Committee (PAC) of the Indian Parliament has decided to review the performance of regulatory bodies established by Acts of Parliament. This decision comes amidst a political storm surrounding allegations of conflict of interest against Securities and Exchange Board of India (SEBI) Chairperson Madhabi Puri Buch.
Sources indicate that the PAC will examine the performance of various regulatory bodies, including SEBI. The committee may summon the SEBI Chairperson to discuss the body's performance, although it is unlikely that she will be called to the next PAC meeting on September 10th.
Meanwhile, Buch faces allegations of conflict of interest regarding SEBI's investigation into the Hindenburg Research report against the Adani Group. Additionally, Congress has questioned Buch over payments she received from her former employer, ICICI Bank, even after becoming a whole-time member of SEBI.
Further complicating the situation, SEBI employees have filed complaints with the finance ministry accusing the regulator's leadership of fostering a "toxic" work culture. These complaints allege instances of shouting, scolding, and public humiliation in meetings. SEBI has refuted these allegations, claiming that a group of employees are attempting to manipulate the narrative surrounding the work environment to gain bargaining power and additional benefits.
The PAC, chaired by Congress leader and Lok Sabha member KC Venugopal, will address several topics during its review. These include performance reviews of regulatory bodies established by Acts of Parliament, reforms in the banking and insurance sectors, and a review of the implementation of centrally sponsored welfare schemes. The agenda encompasses a total of 161 subjects.
In addition to its other responsibilities, the PAC, responsible for auditing government revenue and expenditure, will also audit "fees, tariffs, user charges, and so on" levied at public infrastructure such as airports.