Parliament Committee demands docs to review Sebi’s financial accounts

Scrutiny of the regulator: The Public Accounts Committee (PAC) of Parliament has called for a comprehensive review of the Securities and Exchange Board of India (Sebi)'s accounts for the financial years 2022-23 and 2023-24, according to media reports.

The PAC is responsible for auditing government revenue and expenditure, ensuring accountability in public finances.

Reports suggest that as part of this review, Sebi has been asked to submit documents such as its receipts and payments, the Comptroller and Auditor General (CAG) audit report, and observations from its internal audit committee. These materials are expected to be presented to the finance ministry by September 27, the official added.

This inquiry follows the PAC’s decision to review regulatory bodies established under Acts of Parliament, an agenda introduced during its meeting on August 29.

This marks the first time the PAC, chaired by Congress leader KC Venugopal and consisting of members from both the ruling NDA and the opposition INDIA bloc, has sought to scrutinise Sebi’s financial performance, according to a government official.

The focus on Sebi comes amid ongoing controversies involving its chairperson Madhabi Puri Buch. Hindenburg Research has accused Buch of a conflict of interest in Sebi’s investigation into the Adani Group , claiming she failed to act independently.

Sebi is scheduled to hold a board meeting on September 30, where the allegations against Buch could be discussed. This will be the first board meeting since the Hindenburg accusations were made public.

The board may address 11 consultation papers, including proposals related to the futures and options (F&O) segment, which have surpassed their deadline for public feedback.