Context

• The Public Accounts Committee (PAC) of Parliament has decided to review the performance of the regulatory body over allegations of conflict of interest against Securities and Exchange Board of India (SEBI) Chairperson Madhabi Buch. 
• She has been accused of conflict of interest over the Securities and Exchange Board of India's (SEBI) probe into Hindenburg Research's (US financial research company) claims against the Adani Group.  

SEBI

• The Securities and Exchange Board of India (SEBI) is an autonomous regulatory body that was constituted by the Government of India under the Securities and Exchange Board of India Act, 1992.
• Main objective: Its main objective is to regulate the Indian securities markets and protect the interests of investors.

Major functions of SEBI:

• Regulation: SEBI makes rules and regulations for various securities (like shares, bonds, mutual funds) and the operation of securities markets.
• Registration: It registers companies issuing securities, stock exchanges, mutual fund houses and other intermediaries.
• Investors’ protection: SEBI takes steps to protect investors against fraud and mismanagement.
• Market development: It makes policies for the development of securities markets.

Powers:

• Registration of Companies: SEBI has the power to register companies, stock exchanges, mutual fund houses and other intermediaries. Certain criteria have to be met for registration and SEBI ensures that only eligible entities operate in the market.
• Power of inspection and investigation: SEBI has the power to inspect and investigate the records of companies and intermediaries. This is done to ensure that they are following SEBI rules.
• Penalize: If a company or intermediary violates SEBI rules, SEBI can impose a fine on it, cancel its license or take other punitive action.
• Powers similar to a court: SEBI has powers similar to a court in certain matters. This means that SEBI can summon witnesses, demand documents and issue orders.

Main structure:

• Chairman: The Chairman of SEBI is its head and presides over all the decisions of the board.
• Full-time members: There are some full-time members who are from various specializations such as law, finance, and accounting.
• Additional members: There are some additional members who are appointed by the government.
• Executive Directors: The executive directors conduct the daily operations and implement the decisions of the board.
• Various departments: SEBI has various departments such as inspection department, legal department, market development department, etc.

Public Accounts Committee (PAC):

• Public Accounts Committee (PAC) is one of the financial parliamentary committees (Estimates Committee, Public Accounts Committee and Public Undertakings Committee) of the Parliament of India that ensures that public money is being used efficiently and in a transparent manner.
• Established: In the year 1921 through the ‘Government of India Act or ‘Montford Reforms Act’ 1919’
• Main functions: PAC is responsible for accounting of the revenue and expenditure of the government.
• Members: Maximum 22 members each year (15 members selected by the Speaker of Lok Sabha and 7 members selected by the Chairman of Rajya Sabha)