In an unprecedented move, the Public Accounts Committee (PAC) of Parliament has asked for a detailed review of the Securities and Exchange Board of India (Sebi)'s accounts for financial years 2022-23 and 2023-24.

This is for the first time that the PAC, which is chaired by Congress leader KC Venugopal and comprises members from both the ruling NDA and the opposition INDIA bloc, has called for a scrutiny of Sebi's financial performance, a government official said.

The PAC's role is to audit government revenue and expenditure, and to ensure accountability of public finances.

"The PAC has never called Sebi earlier. It has asked for the data and the last date is September 27, by which the finance ministry has to submit the information to the parliament secretariat," the official told Moneycontrol.

What is the PAC seeking?

The requested documents include Sebi’s receipts and payments, its Comptroller and Auditor General (CAG) audit report, and the regulator’s internal audit committee observations. These materials are likely to be submitted to the finance ministry on September 27, he added.

This investigation comes as part of the PAC’s review of regulatory bodies established by Acts of Parliament, introduced as an agenda item during its meeting on August 29.

"PAC is likely to summon Sebi chairperson Madhabi Puri Buch in its next meeting. It will be a performance review of the regulator," the official added.

The committee's focus on Sebi comes at a critical time as the regulatory body has been embroiled in controversies following allegations against Buch by Hindenburg Research of a conflict of interest regarding Sebi’s investigation into the Adani Group. The American short-seller has accused Buch of not acting independently during the investigation.

Sebi board meeting

The capital market regulator will hold a board meeting on September 30, and issues related to charges against Buch may be taken up for discussion.

The meeting will be crucial as this will be the first time the board will be meeting after he Hindenburg allegations against Buch.

The meeting may also discuss as many as 11 consultation papers floated by Sebi that have passed the deadline for public consultation, including measures related to the F&O (futures & options) segment.