Key PAC meeting on Oct 24, SEBI chief Madhabi Buch likely to appear

SEBI chairperson Madhabi Puri Buch is scheduled to appear before the Parliament's Public Accounts Committee on Thursday in what may turn out to be a stormy meeting following a senior BJP member's accusation that political motivations are guiding the actions of the panel's chairman and Congress MP K C Venugopal.

The meeting's agenda includes oral evidence of representatives of the finance ministry and the Securities and Exchange Board of India (SEBI) as part of the committee's decision to go for the “performance review of regulatory bodies established by Act of Parliament”.

While the committee's decision to include the performance review of regulatory bodies established by legislation in its agenda invited no protest, Venugopal's move to call Buch raised hackles of the ruling party members as she has been at the centre of a political row ignited by US firm Hindenburg's allegations against her.

The short-seller company's accusation of conflict of interest against Buch was seized by the Congress to seek her ouster and to attack the government, rendering political dimensions to the panel's missive to her to appear before it.

BJP MP Nishikant Dubey, a member of the panel, wrote to Lok Sabha Speaker Om Birla against Venugopal, accusing the senior Congress leader of raking up non-existent issues to defame the central government and destabilise the country's financial structure and economy.

Accusing Venugopal of “unconstitutional and disdainful” conduct, Dubey claimed that political motivations were guiding the committee's chairperson after the Congress was “compelled” by voters to sit in the opposition benches following the Lok Sabha polls.

Claiming that unverified allegations by a foreign company like Hindenburg against Buch were part of such a campaign, he alleged that the ‘India Chapter’ of this toolkit has become active.

“This time also, unverified allegations have been levelled against the SEBI Chief by a foreign entity viz., Hindenburg Research, which is notorious for targeting business houses, important functionaries and financial institutions of the country,” Dubey told Birla, urging the Speaker to restrain Venugopal.

Venugopal did not react to the charges.

Parliamentarians from the BJP and its allies are in a majority in the committee, and they are likely to vehemently oppose any move by opposition members to raise issues that they believe are outside the panel's remit.

Dubey has said the sole function of the Public Accounts Committee is confined to scrutinising the appropriation accounts of the Government of India and reports of the Comptroller and Auditor General of India.

The panel's agenda for Thursday also includes oral evidence from representatives of the communications ministry and the Telecom Regulatory Authority of India.