LOKPAL
& SEBI: POLITY
NEWS: Lokpal
seeks SEBI chief’s response on conflict of interest charges
WHAT’S
IN THE NEWS?
The Lokpal has asked SEBI chief Madhabi Puri Buch to
address conflict of interest allegations related to SEBI’s handling of the
Adani Group case. This inquiry underscores the Lokpal's role in anti-corruption
oversight, especially regarding transparency in regulatory actions.
Lokpal-SEBI
Issue and Relevant Background
Recent
Lokpal-SEBI Inquiry:
- Request for Response: Lokpal of
India has asked SEBI chief Madhabi Puri Buch to address allegations of
conflict of interest related to SEBI’s handling of the Adani Group
investigation, following a report by Hindenburg Research.
- Deadline: Lokpal has issued a procedural
order requiring SEBI to submit a detailed affidavit within four weeks.
- Transparency Concerns: Complaints
filed between August and October 2024 question SEBI’s regulatory
accountability and transparency in major corporate investigations.
About
Lokpal:
- Purpose: Anti-corruption ombudsman body
empowered to investigate charges against high-level public officials,
including ministers, MPs, and Group A officials.
- Lokpal and Lokayuktas Act, 2013: Establishes
Lokpal as a central anti-corruption body with a chairperson and up to eight
members.
- Composition Requirements: Chairperson
from judiciary or eminent field, 50% judicial members; inclusivity
mandates for SC/ST, OBC, minorities, and women.
- Inquiry and Prosecution Wings: Dedicated
branches for preliminary inquiries and prosecution under the Prevention of
Corruption Act, 1988.
- Powers: Supervisory authority over
investigative agencies, like the CBI; special powers to summon public
servants and expedite investigations within six months (extensions
possible).
- Jurisdiction: Wide coverage, with some
exceptions for the Prime Minister concerning sensitive domains like
national security and international relations.
About
SEBI:
- Role: SEBI (Securities and Exchange Board
of India) safeguards investor interests, promotes securities market
growth, and ensures market regulation.
- Legal Framework: Governed by SEBI Act, 1992,
and other securities-related acts; enforces rules and adjudicates
disputes.
- Investor Protection: Engages in
investor awareness, financial literacy, and grievance redressal.
- Global Participation: Engages in
global securities standards through the International Organization of
Securities Commissions (IOSCO).
Source: https://www.thehindu.com/news/national/lokpal-seeks-sebi-chiefs-response-on-conflict-of-interest-charges/article68846597.ece