Sebi’s toxic work culture, allegations against Chairperson Madhabi Buch spark Parliamentary inquiry

A parliamentary Public Accounts Committee (PAC) will reportedly investigate allegations against Madhabi Puri Buch, the head of India's Securities and Exchange Board (Sebi), on September 6. The inquiry comes amid growing allegations against Madhabi Puri Buch, as per a report by the Economic Times.

The decision to include this inquiry in the PAC's agenda came after several members expressed concerns about Sebi's operations and the allegations against Madhabhi Buch during the committee's initial meeting on August 29. The PAC, led by Congress leader KC Venugopal, comprises members from both the ruling NDA coalition and the opposition INDIA bloc.

Livemint could not independently verify this news development.

While the official agenda item is vaguely worded as “Performance review of regulatory bodies established by act of parliament,” insiders confirm it specifically targets the recent controversies surrounding the Sebi chief. 

An anonymous official stated, “The matter was added on a suo motu basis in the August 29 meeting as many members were concerned about the serious allegations against the capital market regulator and the Sebi chief.” 

The official added, “The concerned ministry officials may be summoned this month,” ET quoted.

The allegations against Buch are multifaceted. She faces accusations of conflict of interest regarding Sebi's investigation into Hindenburg Research's claims against the Adani Group. 

The opposition Congress party also raised questions about payments Buch received from her former employer, ICICI Bank, even while she was with Sebi. Additionally, Zee founder Subhash Chandra called her ‘corrupt’ and said that, as Sebi chief, she had a role in the failure of the proposed merger between Sony and Zee group. 

Internal strife has also come to light, with employees filing a written complaint to the finance ministry about a “toxic work culture” at the regulator, as per the ET report.

Madhabi Puri Buch's response

Buch and ICICI Bank have both denied any wrongdoing. Sebi dismissed the employees' claims, suggesting that “external elements” were behind the protests. In an official statement, the market regulator described complaints of “public humiliation” in the workplace as “misplaced,” as ET quoted.