The capital market regulator, SEBI, is set to hold a crucial board meeting on September 30, where discussions around the charges against Chairperson Madhabi Puri Buch may be on the agenda. This will mark the first formal meeting since Hindenburg Research made allegations against Buch on August 10, followed by additional claims from Congress spokesperson Pawan Khera.
A source familiar with SEBI’s internal discussions mentioned that the issue is likely to be addressed during the meeting, although it may not be explicitly listed on the agenda. Should the topic arise, Buch is expected to recuse herself from the discussions.
The upcoming meeting is also set to review 11 consultation papers that have completed public feedback, including proposals on “Mutual Fund Lite” regulations, new asset classes, and insider trading reforms. The meeting might address F&O segment regulations, a point of interest for market participants.
Following the Hindenburg allegations, SEBI board members met informally to verify disclosures made by Buch. Despite not convening an official emergency meeting, a press release was issued. However, it lacked detailed information on the validation process.
The allegations against Buch include investments in a global offshore fund linked to Vinod Adani, ownership of consulting firms, and a potential conflict of interest related to her husband’s consulting role at Blackstone. Both Madhabi Puri Buch and her husband have denied the charges, and SEBI has stated that proper disclosures were made.
On September 20, the Lokpal of India directed complainants, including MP Mahua Moitra, to provide evidence of corruption under the Prevention of Corruption Act. The Lokpal noted that certain improprieties may not necessarily constitute corruption as defined by the Act.
Meanwhile, reports suggest that Buch may also face a performance review by the Public Accounts Committee (PAC) in the near future.
