Stage is being set for extension of SEBI Chairperson Madhabi Puri Buch. Her decision to skip PAC meet at the last moment and subsequent subdued reaction of Committee chairman KC Venugopal tells a lot. BJP MP and PAC Member Ravi Shanker Prasad’s hint of her exoneration by C&AG and strong support of the establishment during Hindenburg controversy indicate her continuation as SEBI Chief in coming years.
Show of strength: SEBI Chairperson Mrs. Madhabi Puri Buch didn’t turn up before Public Accounts Committee (PAC) on 24th October 2024. She had confirmed her presence to PAC with her team. There should be no issue at this point. Law of the land permits such exigencies. Even PAC Chairman KC Venugopal acceded to her request without any issue and postponed the PAC meeting for a later date. Is anything fishy or all clear? Let us try to find out.
Composition of PAC: SEBI Chairperson Mrs. Madhabi Puri Buch has been mired in Hindenburg controversy and Parliament’s Public Accounts Committee took a decision to scrutinize capital market regulator SEBI. PAC has 22 members, 15 from Lok Sabha and 7 from Rajya Sabha. It’s headed by the member of the largest opposition party in Lok Sabha. Since INC is the largest opposition party in Lok Sabha, its member of parliament KC Venugopal is the chairman of PAC. There are several BJP members like Ravi Shanker Prasad, Nishikant Dubey, Jagadambika Pal, Aparajita Sarangi, and Tejasvi Surya in the PAC. The Public Accounts Committee generally looks into the red flags raised by Comptroller and Auditor General of India (C&AG) and other audit bodies in their audit reports.
Support of establishment: The decision to summon SEBI Chairperson was taken by PAC in its first meeting itself. Bhartiya Janta Party leaders made hue and cry of it. They opposed the PAC decision saying that SEBI has not been red flagged by C&AG in any of its report. BJP MP Ravi Shanker Prasad was vocal about Suo-motu decision of PAC to summon SEBI Chairperson. Even SEBI Chairperson had sought an exemption from appearing before PAC. After much brouhaha, she agreed to appear before the Committee but changed her mind at the last moment citing person emergency. Committee Chairperson postponed the meeting and said, “In the first meeting of the committee itself, we decided to have a Suo moto subject for review of our regulatory bodies. That is why we called for a review of SEBI this morning. The committee branch sent the notice to the concerned people. First of all, they sought an exemption, SEBI chairperson sought an exemption from appearing before the committee which we denied. After that, she confirmed she and her team would be present on this committee. …Today morning, at 9:30am, she [SEBI chairperson, Madhabi Puri Buch] informed me that due to a personal exigency she is unable to travel to Delhi. Considering a woman’s request, we thought that it is better to postpone today’s meeting for another day.”
Time is not opportune: Why is SEBI Chairperson shying away from appearing before PAC despite her proven track record of market reforms, unmatched skills and support of establishment? Because the time is not opportune and she is surrounded with enemies within her own organization. In all probability, she may appear before PAC in its next meeting. By that time C&AG report may give her a clean chit. PAC may subsequently endorse C&AG report through her deliberations at PAC. The series of clean chit will create a ground for extension of her tenure as SEBI Chairperson.
Believe it or not, Mrs. Madhabi Puri Buch will get an extension. PAC along with C&AG report will pave way for it.
