Congress Raises Concerns Over SEBI Chief's Absence Amid Stock Market Risks to Retail Investors

The Congress party has intensified its criticism of SEBI chief Madhabi Puri Buch, questioning her absence from a parliamentary panel. This follows a video by Congress leader Rahul Gandhi, highlighting risks to retail investors in the stock market. The party raised concerns about Buch's recent non-appearance before the Public Accounts Committee (PAC), citing an emergency.

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Congress media department chairman Pawan Khera questioned, "Why is Madhabi Buch reluctant to answer questions before the Public Accounts Committee PAC of Parliament? Who is behind the plan to protect her from being answerable to the PAC? Is there a well-thought-out conspiracy to risk the hard-earned investments of crores of small-medium investors and benefit Modi jis dear friend Adani?"

Concerns Over SEBI's Independence

The Congress has consistently expressed worries about SEBI's independence under the BJP-led National Democratic Alliance. Khera alleged that SEBI's credibility had been compromised, affecting the trust of India's 11.5 crore registered investors. These investors rely on SEBI for a transparent financial environment.

Khera stated that SEBI's leadership, which promotes transparency in investments, has not met these standards internally. This conduct poses a threat to India's regulatory stability and could deter foreign investors, impacting growth prospects.

Rahul Gandhi's Involvement

In an Instagram video, Gandhi discussed with Khera ways to warn retail investors about stock market risks. He offered to assist in the party's communication efforts to protect small investors' funds. Gandhi captioned the video with, "Who is protecting the syndicate committing this fraud?"

The Congress released another video titled "Buch Bachao Syndicate," accusing SEBI of losing credibility under current governance. The party highlighted conflicts of interest involving Buch and her family, which have shaken investor trust.

Government Allegations

Gandhi later shared the video on his X handle, accusing the government of shielding Buch from investigation. He questioned why Buch was being protected from answering PAC queries and resigning from SEBI, and who was safeguarding Adani from scrutiny.

Khera claimed that BJP MPs protested against PAC summonses for SEBI officials, including Buch. He suggested that this was not coincidental but part of a government effort to shield Buch and larger players in this network.

The Congress statement emphasised that PAC had summoned SEBI officials, including Buch, who cited an emergency just an hour before her scheduled appearance. This raised suspicions about government intervention to protect influential figures.