This high-profile inquiry comes at a pivotal moment as the PAC prepares to evaluate the functioning of regulatory bodies established under parliamentary acts. The agenda for the session indicates that the committee will focus on the performance of both SEBI and the Telecom Regulatory Authority of India (TRAI). Madhabi Puri Buch and Anil Kumar Lahoti, the TRAI chairperson, are expected to present oral evidence in line with the standard parliamentary conventions. Typically, heads of institutions are required to appear before parliamentary briefings when summoned.
The move gains additional attention due to allegations raised by US-based financial research firm Hindenburg, which earlier claimed that SEBI's inquiry into Adani Group's financial operations was insufficiently thorough. The PAC’s examination is set against the backdrop of this controversy, particularly regarding Buch’s alleged ties to the Adani Group, a charge she and the conglomerate have consistently denied. While SEBI has maintained its defense of its regulatory processes, the PAC’s inquiry could bring renewed scrutiny over its handling of the matter.
In August, the opposition, led by the Congress Party, staged nationwide protests and demanded Buch's resignation. The allegations, including that Buch and her husband held stakes in offshore entities connected to Adani’s businesses, have raised questions about potential conflicts of interest. Congress leaders have argued that SEBI's response to these claims has lacked the urgency and transparency needed to restore public confidence. However, both Buch and her husband have denied any wrongdoing, and the Adani Group has also firmly rejected the accusations.
Despite the intense political attention, the PAC’s review will not be confined to these controversies alone. The committee plans to undertake a broader evaluation of the performance of regulatory bodies, focusing on the accountability and efficiency of institutions such as SEBI in carrying out their statutory responsibilities. As part of the proceedings, officials from the Ministry of Finance and the Department of Telecommunications are also expected to testify.
This inquiry into SEBI’s operations comes at a sensitive time for the Indian financial markets regulator. The Hindenburg allegations had already rattled investor confidence in Adani stocks, prompting market fluctuations and a reevaluation of regulatory oversight in India’s financial markets. Furthermore, this session marks one of the most high-stakes parliamentary reviews of regulatory authorities in recent years, reflecting growing demands for more rigorous enforcement of market rules and corporate governance standards.